Thailand amends Cybercrime Act to protect crypto traders

According to a report by local news outlet Bangkok Post, Thailand is considering changes to the Cybercrime Act to protect crypto traders. The report states that the government is expected to amend two emergency orders related to the prevention and control of cybercrime.

The report specifically pointed out that the timeline for amending the emergency order has risen and that the law is set to be considered before the Song Cran Festival.

According to Digital Economy and Society Minister Prasat Jantaranton, the amendments to the two decrees will be presented before the Cabinet on April 8, before being sent to the Council of State for scrutiny. He added that the futon is expected to be effective before the Song Cran Festival.

Thailand wants responsibility shared during scams

According to Prasert, the highlight of the revised 2023 emergency order on measures to prevent and control cybercrime is shared liability during fraud. He noted that he shares greater accountability during the period of cybercrime, which leads to losses for victims, financial institutions and carriers. This means that in such cases most of the responsibility is given to the banks and carriers.

He added that the revised 2018 emergency order for digital assets and cryptocurrency transactions will complement the cybercrime control scheme. Additionally, cybercrime control is overseen by the Securities and Exchange Commission and the Treasury Department.

“The government should meet with banks and carriers as there are still issues that these companies need to understand,” Prasat said.

The amended Cybercrime Act also includes provisions that address the issuance of refunds to victims of fraud. The clause states that if damages are proven, the funds will be refunded to the victim without having to go to court. Prasert added that the Money Laundering Anti-Money Laundering Office was in charge of issuing these refund guidelines and was aware that an objection to any of the refund prices must be first sent to the court and cleared before it is permitted.

Cybercrime Act is expected to have limited impact

According to the report, after the amended laws are gradually phased out, they must first be published in the Royal Gazette. Meanwhile, Thai securities firm Krungsri Securities has previously said it expects Thailand’s Cybercrime Prevention and Restriction Act to have a limited impact on Thai banks and telecom operators. This means that affected businesses will take greater responsibility for maintaining the system to prevent crime.

Thai brokerages pointed out that the only way they can be seriously affected is when it is a crime or fraud, when their system is not maintained properly or has been proven up to date to tackle such crimes. This is because the new amendments have gained the greatest share of liability, noting that it includes greater penalties for perpetrators of crimes. Krungsri also added that conversations with most financial institutions and telecommunications companies in the country show that the necessary measures are in place to tackle fraud and fraud.

Thailand has made progress in the Crypto sector this year, with the country announcing the launch of a distributed ledger technology-based trading system. The SEC noted that the technology can help securities companies leverage their investor networks as the investment in digital assets is becoming more popular. Regarding regulations, the state has also issued an order against OKX to operate without a license.

The SEC has filed complaints against OKX operator Aux Cayes Fintech Co. Ltd and nine Associates. “OKX activities may be operating a digital asset exchange business under Section 3 of the Emergency Order subject to violations of Section 26 and subject to violations and penalties under Section 66 of the Emergency Order,” the SEC said.