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Thailand is stepping up its fight against crypto-related crime with a bold move to regulate foreign peer-to-peer (P2P) trading platforms, signaling a new phase in the country’s digital asset oversight.
The Thai Securities and Exchange Commission (SEC) announced this week that it will implement new regulations targeting offshore crypto platforms operating without proper authorization. The rules will specifically focus on P2P services that enable direct crypto trades between users—often used to bypass centralized exchanges and, in some cases, law enforcement oversight.
Closing the Loopholes
According to the SEC, the rise in illicit transactions facilitated through foreign P2P platforms has prompted a regulatory overhaul aimed at protecting investors and tightening anti-money laundering (AML) compliance.
“These services have created loopholes that bad actors are exploiting,” said Chakkrit Parapuntakul, deputy secretary-general of the Thai SEC. “We intend to close those gaps while still supporting innovation in the crypto space.”
Under the new framework, foreign P2P platforms must register with Thai authorities and adhere to the same standards as domestic exchanges, including stringent KYC (Know Your Customer) and AML procedures. Platforms that fail to comply may face access restrictions or legal action.
Crypto Community Reacts
Thailand’s crypto community has responded with mixed feelings. Some welcome the move as a necessary step to clean up the market, while others worry it could stifle decentralization and innovation.
“This is about balance,” said Surachai Wongsawat, a Bangkok-based blockchain consultant. “Regulation is needed to protect users, but it must not kill the spirit of P2P and borderless finance.”
Bitcoin and other major cryptocurrencies showed minimal reaction to the news, suggesting markets are becoming more resilient to regulatory headlines.
Regional Trend Toward Regulation
Thailand’s crackdown aligns with a broader trend in Southeast Asia, where governments are stepping up oversight of crypto markets. Countries like Indonesia, Vietnam, and the Philippines are also exploring tighter rules around offshore platforms and decentralized finance (DeFi).
Analysts say Thailand’s move could serve as a template for other nations navigating the fine line between innovation and enforcement.
“As crypto becomes mainstream, regulators will increasingly go after the ‘gray zones,’” said Emily Zhang, an APAC fintech strategist. “Foreign P2P platforms are next on the radar, and Thailand is leading that charge.”
