Thailand Fast-Tracks New Digital Regulations, Intensifying Scrutiny on Crypto Businesses

Thailand is poised to implement significant new digital regulations aimed at combating cybercrime and tightening the oversight of digital asset businesses, with enforcement expected to commence before the Songkran festival, taking place 11-15 April, according to the Minister of Digital Economy and Society, Prasert Jantararuangtong, The Bangkok Post reported on Wednesday.

The Thai cabinet approved two crucial draft laws proposed by the Ministry of Digital Economy and Society (DES) on Tuesday, addressing growing concerns over online criminal activities and the management of the burgeoning digital asset sector. Minister Prasert announced on Wednesday that these laws will take immediate effect upon their publication in the Royal Gazette.

The first piece of legislation is an executive decree focused on bolstering the prevention and suppression of technology-related crimes. A key update with significant implications for the digital asset space is the expanded scope of definitions within the decree. Notably, "digital asset businesses" and "e-wallets" are now explicitly included, paving the way for enhanced transparency and information exchange regarding digital wallet addresses. This move suggests a greater emphasis on tracking and potentially identifying individuals involved in illicit activities using digital assets.

Furthermore, the decree empowers Thailand's Securities and Exchange Commission (SEC) to more effectively monitor and supervise the operations of digital asset businesses. This increased regulatory authority could lead to stricter enforcement of existing rules and the potential introduction of new compliance measures for crypto exchanges and other digital asset service providers operating within Thailand.

The expedited enforcement timeline, taking effect the day after gazette rather than after a 30-day delay, underscores the urgency with which the Thai government is approaching these issues.

The second draft law is an executive decree specifically addressing digital asset business operations. This legislation introduces clear guidelines for foreign digital asset companies seeking to provide services to Thai residents. A key provision mandates that these overseas entities must obtain authorization under Thai law if their activities are deemed to be targeting the Thai population. The draft outlines specific characteristics that would indicate such targeting, including offering content in the Thai language or facilitating payments in Thai baht.

This aspect of the new regulations could have significant implications for international crypto exchanges and service providers. Those actively seeking Thai users will likely need to navigate the local regulatory framework, potentially requiring them to establish a local presence and adhere to Thai licensing requirements. This could lead to some international platforms restricting access for Thai users if they choose not to comply.