Thailand Considers Changes to Cybercrime Law to Protect Cryptocurrency Traders
According to local news media Bangkok Post, Thailand is considering amending its cybercrime laws to protect cryptocurrency traders. The report indicates that the government is expected to revise two emergency decrees related to the prevention and suppression of cybercrime.
The report specifically notes that the timeline for amending the emergency decrees has accelerated, with the laws to be reviewed before the Songkran music festival.
According to the Minister of Digital Economy and Society, Prasert Jantaruangtong, the amendments to the two decrees are expected to be presented to the Cabinet on April 8, before being sent to the Council of State for review. He added that the law is anticipated to come into effect before the Songkran festival.
Thailand Aims to Share Responsibility During Scams
According to Prasert, the highlight of the revised 2023 emergency measures to prevent and suppress cybercrime is the shared responsibility during scams. He noted that during incidents of cybercrime, the losses incurred by victims, financial institutions, and telecom operators will be greater. This means that, in such cases, the majority of the responsibility will fall on banks and telecom operators.
He added that the amended 2018 emergency decree will oversee digital assets and cryptocurrency transactions, complementing the cybercrime suppression plan. Furthermore, the Securities and Exchange Commission and the Ministry of Finance will supervise the suppression of cybercrime.
Prasert stated, “The government should meet with banks and telecom operators, as these companies still need to understand some issues.”
The revised cybercrime law also includes a clause regarding the refund of victims of scams. This clause mentions that if damages can be proven, funds will be refunded to victims without the need to go to court. Prasert added that the Anti-Money Laundering Office will be responsible for issuing guidelines for these refunds, pointing out that any objections to the refund amounts must first be submitted to the court and cleared before they can occur.
Limited Expected Impact of Cybercrime Law
Reportedly, the revised law must first be publicized in the Royal Gazette before it can come into effect in phases. Meanwhile, Thai brokerage firm Krungsri Securities previously mentioned that it expects the revised cybercrime prevention and suppression law to have limited impact on Thai banks and telecom operators. This means that affected companies bear greater responsibility for maintaining their systems to prevent crimes.
The Thai brokerage firm noted that the only way they would be severely affected is if it is proven that their systems were not properly maintained or updated to address such crimes in cases of criminal activity or scams. This is because the new amendments now place the largest share of responsibility in their hands, while also indicating that this includes penalties for offenders. Krungsri also added that dialogues with most financial institutions and telecom companies in the country show they have the necessary measures to address fraud or scams.
Thailand has been making significant strides in the cryptocurrency sector this year, having announced the launch of its blockchain-based trading system. The SEC noted that due to the increasing popularity of digital asset investments, it hopes to use this technology to help securities companies leverage their investor networks. In terms of regulations, the country has also issued directives against OKX for operating without a license.
The SEC has filed a complaint against OKX operator Aux Cayes Fintech Co. Ltd and nine employees. The U.S. Securities and Exchange Commission stated, “Under Article 3 of the Emergency Decree, OKX operated without a license, violating Article 26, and is subject to the crimes and penalties of Article 66 of the Emergency Decree, with OKX’s activities potentially becoming operational in the digital asset exchange business.”
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