Thailand Crack Down on P2P Crypto Trades to Combat Online Fraud

Thailand authorities aim to regulate peer-to-peer (P2P) crypto trading to prevent online fraud. This initiative, backed by various state agencies, seeks to protect people from financial loss and combat money laundering. With plans to modify existing regulations, the country aims to establish itself as a digital asset hub and promote crypto adoption.

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Our analysis of the situation

In a feisty crackdown on online fraud, authorities in Thailand are turning their attention to peer-to-peer (P2P) trading in the crypto sphere. The aim? To put a stop to scammers washing their ill-gotten gains through the previously unregulated realm of P2P transactions. With an array of state agencies in tow, including the Defense Ministry, the Thai Securities and Exchange Commission, and the Royal Thai Police among others, a meeting was chaired by the Thai Minister for Digital Economy and Society, Prasert Jantararuangthong, in response to Prime Minister Srettha Thavisin's directive to combat the surge in online fraud.

The Bangkok Post reported that a whopping 80% of the fraudulent 100 million baht ($2.7 million) that is recorded daily in Thailand is funneled through P2P channels. This has made it an appealing route for fraudsters to launder their spoils, thanks to the lack of regulation. With 2 million crypto accounts in Thailand, authorities are now rethinking their approach to regulating this rapidly evolving sector.

The ambitious plan also includes expanding tax exemptions for crypto trading, aligning with the Finance Ministry's decision to waive the previously imposed 7% tax on the crypto sector. It's all part of a broader vision to foster crypto adoption and drive the digital economy. The goal? To position Thailand as a leading digital asset hub and bring the country's approach to crypto regulation in line with international best practices.

In the face of such vigorous regulatory activity, registered platforms can breathe a sigh of relief as they will not be caught in the crosshairs. The focus remains on uncovering and trouncing fraudulent activities, including call center scams and online fraud, while propelling Thailand into the digital asset big league.

Watch this space as Thailand braces itself to stamp out crypto-related financial crime and shape a brighter, cleaner future for its digital asset landscape.

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