The Securities and Exchange Commission Thailand SEC is ready to coordinate with relevant agencies to step up the process of blocking foreign digital asset platforms that solicit or advertise services (solicit) to investors in Thailand. The blocking process has been much faster after the Digital Asset Business Act (No. 2) B.E. 2568 (Digital Asset Act) and the Technology Crime Prevention and Suppression Act (No. 2) B.E. 2568 (Technology Crime Act) came into effect on April 13, 2568.
According to the amended Digital Asset Act, it is stipulated that digital asset business operators who have any of the following characteristics are considered to be providing services to persons in the Kingdom who must be licensed under the Digital Asset Act.
- All or some of the digital asset business operators are displayed in Thai language.
- The digital asset business operator is registered using the domain name “th” or “Thai” or other name that refers to Thailand, the Kingdom or the Kingdom of Thailand or uses a Thai language domain name.
- It is determined by the digital asset business operator that users can pay or choose to pay in Thai baht or receive payments through a deposit account or electronic money account in Thailand.
- There are conditions that Thai law shall be applied as the law applicable to digital asset transactions or require legal proceedings to be conducted in Thai courts.
- A fee is paid to a computer location service provider to help users in the Kingdom of Thailand access the services of a specific business operator.
- An office, agency or personnel has been established to provide support or assistance to service users in the Kingdom of Thailand.
- There are other characteristics as announced by the SEC.
At the same time, the Technology Crime Act stipulates that the Ministry of Digital Economy and Society (DE) can take action to block websites and applications of foreign digital asset business operators that behave in the above manner, which is considered to be providing services to persons in the Kingdom without permission under the Digital Asset Act.
Enforcement by the Thailand SEC
For digital asset business operators, the law requires the exchange of information, screening, and suspension of transactions or accounts related to technology crimes in the same manner as commercial banks, including under the mechanism of refunding victims, which will allow victims to receive their money back more quickly. In addition, there is a blacklist of individuals or digital asset wallet numbers involved in technology crimes, and digital asset business operators are prohibited from making transactions with individuals on the list or digital asset wallets.*
Mr. Anek Yoo-yuen, Deputy Secretary-General and Spokesperson of the SEC, said that “After the two laws come into effect, the process of blocking access to digital asset trading platforms that are considered unlicensed digital asset businesses will be more concise, faster, and efficient. For owners of digital asset mule accounts who open or allow others to use their digital asset accounts to commit technological crimes, they are subject to imprisonment not exceeding 3 years or a fine not exceeding 300,000 baht, or both.
The SEC encourages investors to use the services of licensed digital asset business operators in Thailand because they are protected under the Digital Asset Business Act and the SEC closely monitors them. However, investors who use digital asset trading platforms abroad must be careful because they may be at risk of being scammed, including the risk of being a money laundering channel for criminals.”
Tip to know
What is the Thailand SEC?
The Thailand SEC (Securities and Exchange Commission) of Thailand is the agency responsible for overseeing and controlling the Thai capital market, as well as protecting investors.
The main functions of the SEC:
- Regulate the stock exchanges, such as the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI).
- Controlling the issuance and offering of securities such as stocks, bonds, and mutual funds.
- Prevent illegal activities such as insider trading and market manipulation.
- Promote transparency and develop the Thai capital market.
- Protect investors by providing knowledge and scrutiny on investment businesses.
Related laws:
- Securities and Exchange Act B.E. 2535 (and its amendments)
If you are interested in investing in stocks or financial products in Thailand, understanding the role of the SEC will help you invest more safely.
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