Crime coins: SEC cracks down on crypto laundering in Thailand
In a bold move, the Securities and Exchange Commission (SEC) has thrown down the gauntlet, demanding digital asset operators report suspicious transactions as part of a crackdown on crypto money-laundering scams.
This action follows hot on the heels of accusations against iCon Group, a direct sales outfit allegedly involved in laundering dirty money through the stablecoin USDT. The Department of Special Investigation is digging deep, having already swooped in to seize the company’s assets amid fears of sneaky money laundering using digital currencies.
Preecha Praipattarakul, Upbit Exchange (Thailand) chief, highlighted the tricky business of stopping money laundering in its crypto-crusted tracks. He pointed out that while cryptocurrencies serve as intermediaries, banks become the linchpin when investors turn digital dosh into cold, hard cash.
Keeping a close eye on these digital dealings demands teamwork from all quarters to ensure transparency and vigilance.
“In some cases, when loot is laundered from abroad and funnelled to a local digital asset exchange for a crypto cash-in, there’s definitely a whiff of money laundering. “But remember, it’s not always local exchanges. Offshore platforms can just as easily be a laundering loophole.”
The Thai Digital Asset Operators Trade Association (TDO) is pledging to partner with the SEC to sweep transparency through business dealings. Jirapat Namtubtim of GMO Z.com Cryptonomics (Thailand) noted that crypto’s role in laundering is a mere 1% blip compared to traditional dodgy dealings like cash, real estate, and gold.
“News like this can tarnish crypto’s glitter. But we’re committed to beefing up investigations and tightening our KYC [know your customer] protocols through close collaboration.”
Att Tongyai Asavanund, TDO President, underscored the need for caution and beefed-up KYC checks to nip risks in the bud. Despite the challenges, the TDO is dead set on measures to steady digital asset trading waves, issuing alerts when crypto prices take wild swings.
According to TDO figures, digital asset trading hit a whopping 1.67 trillion baht in 2023, a sky-high jump of 94.2% from the previous year. This dizzying surge underscores the pressing need for robust regulation to safeguard the trading landscape’s integrity.
Finance guru Lavaron Sangsnit weighed in on those embroiled in the iCon saga, saying their accountability hinges on their intentions. The Finance Ministry, which upholds the 1984 public fraud law, might need a legislative makeover to keep direct selling airtight against today’s trickery.
With e-commerce blazing a trail, the direct sales scene is booming, sparking a call for regulatory recalibration to ensure the laws pack a punch in combating crafty con artists.
What Other Media Are Saying
- Slashdot reports that the SEC has ruled NFTs sold by an LA-based entertainment firm are securities, expanding crypto asset regulation and challenging NFT investment claims. (read more)
Frequently Asked Questions
Here are some common questions asked about this news.
Why is the SEC focusing on digital asset operators for money laundering prevention?
Digital assets can obscure transaction origins, complicating traditional money laundering detection methods. SEC aims to enhance transparency and accountability within this growing financial sector.
How do cryptocurrencies challenge traditional anti-money laundering strategies?
Cryptocurrencies enable quick cross-border transactions and cash conversion, bypassing conventional banking systems, thus creating challenges for traditional anti-money laundering measures.
What if cryptocurrencies become the primary medium for money laundering?
Regulatory frameworks and technological innovations would need rapid adaptation to address new methods of hiding illicit activities within decentralized networks.
How can enhanced KYC processes reduce cryptocurrency-related money laundering?
Enhanced KYC processes verify user identities, potentially deterring fraudulent activities by making it harder for criminals to operate anonymously.
What role does collaboration between agencies play in combating crypto-related fraud?
Inter-agency collaboration ensures comprehensive oversight, pooling resources and expertise to identify and address complex money laundering schemes efficiently.
