In an effort to tighten its grip on money laundering activities, Thailand is ramping up its regulatory oversight on both gold and cryptocurrency markets. This initiative, reportedly spearheaded by Prime Minister Anutin Charnvirakul, aims to unify the regulatory framework for these asset classes, traditionally managed separately, to curb the flow of illicit funds.
Local reports indicate that the government is focusing on areas frequently exploited by criminal entities to bypass the formal banking system. This includes the trade and storage of gold bars, the use of online gold platforms, and the circulation of digital currencies. During a recent meeting at the Ministry of Finance, Charnvirakul emphasized the necessity of addressing both modern digital and traditional financial crimes, stating, "We must work as a single, integrated force to protect the public interest and the integrity of our financial system."
A key component of this strategy involves the establishment of a national data hub for real-time monitoring of suspicious activities. This hub will facilitate the creation of risk profiles to better detect and respond to evolving criminal tactics. On the gold trading front, the Anti-Money Laundering Office has been directed to lower the mandatory reporting threshold for physical gold purchases, which currently stands at 2 million Thai baht (approximately $63,000). This change aims to prevent criminals from evading detection by making smaller, fragmented transactions.
For digital assets, the Thailand Securities and Exchange Commission (SEC) has been tasked with enforcing the Travel Rule more rigorously. This global anti-money laundering standard requires crypto asset service providers to gather and share identifying details of transaction participants, especially in wallet-to-wallet transfers facilitated by exchanges. Though no official measures have been announced against self-custody wallets, the increased enforcement could lead to stricter verification processes and controls on withdrawals to such wallets by regulated intermediaries.
Thailand has historically maintained a structured regulatory approach to cryptocurrencies, emphasizing licensing and clear rules. The nation was a pioneer in Southeast Asia in establishing a comprehensive crypto regulatory framework, placing exchanges, brokers, and dealers under the oversight of the SEC. In recent years, the SEC has also targeted misleading crypto advertising and taken steps to combat crimes involving digital currencies, including measures against foreign peer-to-peer platforms.
The current move to combat 'gray money' signifies a shift in strategy, merging the regulation of crypto and gold under a cohesive, data-driven enforcement model. This approach underscores Thailand's commitment to integrating digital assets into the broader financial regulatory landscape, rather than treating them as separate or exceptional entities.
This article is based on local reports and aims to provide clear and accurate coverage of Thailand's evolving regulatory environment regarding gold and cryptocurrencies.