Thailand’s ‘Operation Crypto Phantom’ major crackdown on illegal cryptocurrency networks in 2025
Thailand police organised a major action against illegal crypto networks and shut many of them down as a part of a larger effort to regulate the use and trade of cryptos in the country. The operation was code-named Crypto Phantom, and it took place on April 18th in Cherng Talay.
The operation was a great success, and the networks were shut down. Cryptos are widely used in Thailand and those who use them within the legal framework welcome efforts to shut down illegal networks.
Closed Networks
The main targets of Operation Crypto Phantom were Ex24.pro and Cryptopida, the two secret and illegal crypto networks operating in the city. However, the operation was conducted in eight different locations. One of these was operating out of the nightclub in Patong.
The officers who conducted the raids noted that there was a lot of Russian signage at these locations and that this would be further investigated. The networks conducted hand-to-hand crypto trade and thus avoided tax and security obligations. The overall value of the transactions on these networks was 425 million USDT—amounting to approximately 14 billion Baht.
Police Findings
The police raided the eight locations and seized the computers, mobile devices, and bank accounts found there, as well as apprehended five individuals involved in illegal crypto trade. The investigation will further look into the illegal activities for which these cryptos were used.
It’s believed that the cryptos finance illegal dealings such as buying narcotics and money laundering. Some were also used as a part of call centre fraud operations, which have become prominent in Thailand lately. That is the usual outcome of cracking down on illegal crypto networks.
State of Crypto Regulations in Thailand
Crypto trading is legal and regulated in Thailand. Gains made from crypto are also taxed as investments, as cryptos aren’t treated as currency. In early April, the government came out with plans to increase the oversight of digital businesses in general and crypto most of all. This raid is a part of that effort.
Thailand also imposes the Know Your Customer laws to prevent money laundering. Some of the best crypto sports betting companies already use this method, as it’s a common way to prevent fraud, alongside other security measures. The use of crypto is on the rise in Thailand among middle-class investors and tourists, and regulations are catching up with that change.
The New Regulation Framework
In early April, Thailand set up a new regulation framework to comprehensively regulate the use of crypto. There have been a few measures that caught the attention of the media. Some are part of a wider trend of crypto regulations across the world, while others are specific to Thailand.
- Securities and Exchange Commission (SEC) lifted the previous limit of 300,000 baht for retail investors in asset-backed tokens. This has been a booming market, and removing this cap will allow it to grow further.
- Digital asset businesses will now have to obtain an SEC license when expanding their services. Many digital assets could be used for a variety of other purposes beyond making payments, and in order to ensure integrity, a move into these industries will require additional approval.
- New rules also mandate that custodial wallets provided by crypto businesses must be subsidiaries of publicly listed companies. The measure is introduced to guarantee safety for digital storage solutions.
- Regulations were also put in place to govern how cryptos are advertised. The new rules include reviews and reporting made to the proper agencies to ensure quality.
Market Composition
At this point, there are about 13 million crypto users in Thailand, which is over 18 percent of the population. The market value of those crypto holdings is around USD 488.9 million. It’s expected that the market will have an annual growth of about six percent in the next six years.
The most used crypto in Thailand is Tether, which has 34 percent of the market, and Bitcoin and Ethereum are right behind. Most of the local trade happens on the Bitkub market, which handles 90 percent of all the trades in the crypto sphere.
Thailand police have conducted an operation to shut down a few illegal crypto trading networks. This was done with a raid on eight different locations, which led to further investigation into how these funds were used. It’s part of a broader effort to regulate the use of cryptos in the country.
Cryptocurrencies are already widely used for sports betting, trading, and ensuring fast payments. New regulations came out in early April, and they cover everything from advertising the use of crypto to ensuring the safety of digital wallets. Cryptos are expected to grow by about six percent in the coming years.
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