Battle for supremacy in crypto mule accounts intensifies

The competition to combat crypto mule accounts is intensifying with the recent amendments to laws aimed at strengthening the fight against digital asset mule accounts in Thailand. The Securities and Exchange Commission (SEC) is taking proactive measures to tackle the misuse of foreign platforms for money laundering and protect the public from cybercrimes.

Since 2024, the SEC has been working closely with the Thai Digital Asset Operators Trade Association and digital asset business operators to address the issue of digital asset mule accounts. Together, they introduced an industry-wide standard in March 2025 to prevent and manage mule accounts, aligning with the standards followed in the banking sector.

To enhance the effectiveness of combating cybercrime, the government approved amendments to the 2018 Emergency Decree on Digital Asset Business and the 2023 Emergency Decree on Measures for the Prevention and Suppression of Technology Crimes. These revisions aim to ensure safer financial transactions and strengthen efforts to combat online fraud. Once published in the Royal Gazette, both laws will come into effect.

The recent amendments are significant in addressing digital asset mule accounts more efficiently. They include establishing better data-sharing mechanisms with relevant agencies and enhancing the ability to block the use of foreign digital asset trading platforms for money laundering. By swiftly blocking websites and applications operated by overseas digital asset businesses targeting Thai investors, the authorities aim to strengthen law enforcement and foster collaboration between digital asset businesses, banks, and government agencies.

Digital asset businesses are now required to exchange information, screen suspicious accounts, and suspend transactions relating to cybercrime in a manner similar to commercial banks. Additionally, they must participate in victim compensation schemes to ensure faster reimbursements for fraud victims. A blacklist of individuals or digital wallet addresses involved in cybercrime will be established, preventing businesses from engaging in transactions with these entities.

The recent amendments also introduce penalties for individuals facilitating criminal activity through digital asset accounts, including imprisonment of up to three years, a fine of up to 300,000 baht, or both. Similar penalties apply to those involved in opening bank or digital asset accounts for others. Moreover, measures are in place to prevent foreign peer-to-peer platforms and other types of foreign digital asset businesses from offering services to Thai investors, ensuring compliance with Thai laws.

The collaboration between the SEC, the Digital Economy and Society Ministry, relevant agencies, the Thai Digital Asset Operators Trade Association, and digital asset businesses will play a crucial role in enforcing these legislative updates. By blocking foreign digital asset platforms operating in Thailand and overtly targeting Thai investors, these measures aim to safeguard the public and maintain the integrity of digital asset transactions.