Thailand’s state authorities convened on Tuesday to address the pressing need for regulations governing peer-to-peer (P2P) cryptocurrency transactions and to enhance measures to combat online fraud comprehensively.
Led by Prasert Jantararuangthong, the Minister for Digital Economy and Society, the meeting brought together representatives from various governmental bodies, including the Thai Securities and Exchange Commission (SEC), the Bank of Thailand, the Royal Thai Police, and the Defense Ministry, among others.
During the session, Minister Prasert emphasized the importance of adapting existing crypto regulations to encompass oversight of P2P cryptocurrency transactions. He clarified that such regulation efforts would not impact cryptocurrency traders operating on authorized exchanges, as reported by the Bangkok Post.
The initiative to regulate P2P crypto transactions aims to curtail avenues exploited by scammers engaging in illicit activities. Prasert highlighted this focus as part of a broader strategy involving a series of measures to effectively combat online fraud.
Additionally, Minister Prasert called upon the SEC to explore the possibility of further tightening regulations governing P2P cryptocurrency exchange activities. Should the regulatory body fail to demonstrate progress in enhancing existing regulations, Prasert indicated his intention to escalate the matter to the Prime Minister, advocating for the implementation of a new regulatory framework specifically targeting P2P crypto transactions.
Regulating Crypto P2P Transactions in Thailand as a Measure Against Online Fraud
Thailand has grappled with a surge in fraudulent activities, with scammers masquerading as legitimate businesses often requesting peer-to-peer (P2P) payments for various products. In response to this alarming trend, the Thai government took decisive action by establishing the Anti-Online Scam Operation Center (AOC) in November 2023, specifically tasked with investigating cryptocurrency-related online scams.
In a notable collaboration last year, Binance exchange emerged as a pivotal ally to Thailand’s Royal Police in their pursuit of major cryptocurrency scam perpetrators. The assistance provided by the Binance team proved instrumental in uncovering the culprits behind a large-scale pig butchering scam, resulting in the seizure of cryptocurrency assets valued at a staggering 10 billion Thai Baht (equivalent to $277 million).
The seriousness of the situation prompted Thai Prime Minister Srettha Thavisin to issue a directive on April 1, mandating state authorities to deliver tangible outcomes in the crackdown on rampant online fraud within a strict timeline of 30 days.
Following a high-level meeting, it was decided that relevant parties would promptly report any pertinent information regarding crypto online scams to the AOC. Additionally, the central bank and the Thai Bankers’ Association were tasked with taking immediate measures upon receipt of these reports.
Moreover, the Royal Thai Police and the Defense Ministry were assigned the responsibility of dismantling illegal telecommunication signal towers. The police were also encouraged to enlist the cooperation of neighboring communities in reporting online crypto scams and to dismantle any call center operations associated with fraudulent activities.
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