Crime coins: SEC cracks down on cryptocurrency money laundering in Thailand

Photo courtesy of PCMag

In a bold move, the Securities and Exchange Commission (SEC) has thrown down the gauntlet and is demanding digital asset operators report suspicious transactions as part of the crackdown on cryptocurrency money laundering.

This action follows the allegations against iCon groupa direct sales organization allegedly involved in money laundering through the stablecoin USDT. The Department of Special Investigation is digging deep and has already stepped in to seize the company’s assets, fearing covert money laundering using digital currencies.

Preecha Praipattarakul, head of Upbit Exchange (Thailand), highlighted the difficult issues company of stopping money laundering in its crypto-corrupted tracks. He pointed out that while cryptocurrencies act as a middleman, banks become the linchpin when investors convert digital money into cold, hard cash.

Keeping a close eye on these digital transactions requires teamwork from all sides to ensure transparency and vigilance.

“In some cases, when loot is laundered from abroad and funneled into a local digital asset exchange for a crypto income, there is certainly a hint of money laundering. “But remember: they are not always local exchanges. Offshore platforms may as well be a loophole.”

The Thai Digital Asset Operators Trade Association (TDO) pledges to cooperate with the SEC to achieve transparency through business transactions. Jirapat Namtubtim of GMO Z.com Cryptonomics (Thailand) noted that crypto’s role in money laundering is only 1% compared to traditional untrustworthy transactions such as cash, real estate and gold.

“News like this can tarnish the glitter of crypto. But we are committed to intensifying investigations and tightening our KYC (know your customer) protocols through close cooperation.”

Att Tongyai Asavanund, president of TDO, underlined the need for caution and enhanced KYC checks to nip risks in the bud. Despite the challenges, the TDO is committed to taking measures to stabilize digital asset trading waves and issue alerts when crypto prices exhibit wide swings.

According to TDO figures, digital asset trading reached a whopping 1.67 trillion baht in 2023, a sky-high 94.2% jump from the previous year. This staggering increase underlines the urgent need for robust regulations to protect the integrity of the trading landscape.

Finance guru Lavaron Sangsnit spoke out about those involved in the iCon saga, saying their responsibility depends on their intentions. The Treasury Department, which enforces the 1984 Government Fraud Act, may need a legislative makeover to keep direct sales watertight against today’s fraud.

As e-commerce takes hold, the direct selling scene is booming, leading to calls for regulatory recalibration to ensure the laws pack a punch in the fight against devious scammers.

Business newsCrime newsThailand news