SEC escalates efforts to combat digital asset mule accounts and the illicit use of foreign platforms for money laundering

Amendments to Thailand’s Digital Asset Business Law and Cybercrime Law enhance efforts to combat cybercrime and tackle mule accounts. Key measures include website and application blocking, strengthened anti-money laundering protocols, and stricter penalties for violators.

The Thai Cabinet has approved amendments to the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018) and the Emergency Decree on Measures for the Prevention and Suppression of Cybercrime B.E. 2566 (2023). These revisions aim to bolster measures against cybercrime and mule accounts, enhance the security of public financial transactions, and improve the efficiency of combating online scams. Both laws will come into effect once published in the Government Gazette.

The changes to the Digital Asset Business Law and the Cybercrime Law will make it easier to stop the misuse of digital asset accounts. These updates explain how information is shared between agencies and improve efforts to prevent foreign digital asset platforms from being used for money laundering. They also allow faster action to block websites and apps of foreign digital asset companies that target investors in Thailand. The goal is to improve law enforcement, boost teamwork between banks, digital asset companies, and other agencies, and tackle cybercrime more effectively. Measures related to digital assets include:

Measures for combating digital asset mule accounts 

– Requiring digital asset business operators to exchange information, screen and suspend transactions or accounts related to cybercrimes in the same manner as commercial banks. This includes being subject to mechanisms for refunding victims, which will enable them to receive refunds more quickly. Additionally, a blacklist of individuals or digital asset wallet addresses related to cybercrimes will be established, and digital asset business operators will be prohibited from conducting transactions with individuals or digital asset wallets on this list;

 – Requiring commercial banks, telephone and telecommunications network providers, social media service providers, and digital asset business operators to take joint  responsibilities for damages caused by cybercrimes if they fail to comply with the standards or measures for preventing cybercrimes as specified by regulatory authorities;

 – Specifying penalties for owners of digital asset mule accounts who open or allow others to use their digital asset accounts to commit cybercrimes. They are subject to imprisonment for up to three years, a fine of up to 300,000 baht, or both. Those who are hired to open bank accounts with commercial banks and open accounts with digital asset business operators will be subject to the same level of punishment.  

Measures for preventing the use of foreign digital asset exchanges as a channel for money laundering

– Detering and preventing foreign peer-to-peer (P2P) digital asset trading platforms, which are qualified as digital asset exchanges under the Digital Asset Business Law, as well as other types of foreign digital asset business operators, from providing services to local investors;

– Authorizing the Ministry of Digital Economy and Society to more swiftly block websites and applications of foreign digital asset business operators that solicit or advertise services to investors in Thailand to enhance the efficiency of law enforcement.

Source : SEC strengthens measures to combat digital asset mule accounts, elevates blocking the misuse of foreign platforms for money laundering to reduce public harm