Thai Crackdown: 11 Arrested in Unlicensed Crypto Raids

Thai authorities have intensified their crackdown on unlicensed cryptocurrency activities, conducting raids on five firms and arresting 11 individuals. The Economic Crime Suppression Division (ECD) executed search warrants on the companies operating in Nakhon Pathom, Samut Sakhon, and Bangkok provinces.

The arrested individuals, a mix of executives and employees, were found to be illegally operating e-money firms with a combined annual turnover of approximately one billion baht ($29.3 million). The firms allegedly acted as intermediaries for local investors buying overseas investment products, requiring customers to transfer money into e-wallets for cross-border purchases.

Thailand's 2017 Payment System Act mandates registration and licensing for forex-based e-money businesses. The ECD stated that the firms' failure to register posed a money laundering risk and enabled capital flight, damaging the economy. The 11 suspects were charged with providing unlicensed electronic money services.

This is not the first time Thai authorities have targeted illegal crypto activities this year. In January, the Cyber Crime Investigation Bureau proposed a ban on Polymarket, a crypto-based prediction marketplace. Last month, Thai and Chinese police froze cryptocurrencies worth around $2.5 million and arrested two Chinese individuals for fraud and human trafficking. Binance TH reported that Thailand has seen a significant increase in investment complaints and damage, with over 1,000 data requests from police over the past three years.

Singapore-based intergovernmental blockchain advisor Anndy Lian argued that Thai authorities are primarily focused on bad actors. He cited operations like Trust No One and The Purge, which resulted in numerous arrests and the seizure of substantial sums. Lian also mentioned raids on illegal mining operations in Chachoengsao and Surat Thani, where people were caught stealing electricity to power their rigs.

Lian reiterated that Thai police are targeting fraudsters, extortionists, and thieves, rather than the crypto space as a whole. The Securities and Exchange Commission (SEC) has been pushing to block unlicensed exchanges, but this is more about regulating the space than shutting it down.

Despite the crackdown on illegal activities, the cryptocurrency industry in Thailand is growing healthily. The Southeast Asian nation ranked 16th in Chainalysis' 2024 Global Crypto Ad