Thailand’s War on Illegal Crypto: Five Firms Raided, Millions at Stake

Thai Police Raid Illegal Crypto Firms

The Thai ECD, after securing search warrants, conducted simultaneous operations at five company offices suspected of running illegal electronic currency businesses. These firms, located in three provinces, were allegedly facilitating cross-border investment transactions without proper authorization.

Authorities revealed that the arrested individuals, including both executives and lower-level employees, were involved in processing electronic payments for Thai investors looking to purchase overseas investment products. The firms required customers to deposit funds into digital wallets, enabling transactions outside Thailands formal banking channels.

During the raids, officers confiscated six computers along with crucial financial records. The ECDs investigation determined that the companies collectively handled transactions worth approximately 10 billion Thai Baht ($29.3 million USD) annually.

Regulatory Concerns and Legal Violations

Thailand has stringent regulations regarding foreign exchange and electronic money businesses. Under the 2017 Payment Systems Act, all electronic money service providers must register and obtain approval from Thai authorities. However, the targeted firms failed to comply with this requirement, raising concerns about potential money laundering risks and capital outflows.

As a result, the 11 individuals have been charged with operating unlicensed electronic currency services, violating Thai financial regulations. This incident is part of Thailands broader efforts to clamp down on illegal crypto-related activities, ensuring that digital asset firms comply with legal frameworks to protect investors and maintain financial stability.

Thailands Crackdown on Crypto-Related Crimes

This raid is not an isolated incident. Thai authorities have been actively combating illegal crypto operations in recent months:

• January 2025: The Cyber Crime Investigation Bureau (CCIB) proposed a ban on Polymarket, citing economic and social risks posed by blockchain-based prediction markets.
• February 2025: Thai and Chinese law enforcement collaborated to arrest two Chinese nationals accused of fraud and human trafficking. Authorities also froze approximately $2.5 million in crypto assets.
• March 2025: Binance TH reported that Thailand ranks among the top countries globally in terms of investment-related complaints and losses, receiving over 1,000 law enforcement data requests in the past three years.

Despite concerns that Thailand is cracking down on cryptocurrency as a whole, blockchain advisor Anndy Lianemphasized that authorities are primarily targeting bad actors rather than imposing blanket restrictions on the crypto industry.

Lian noted that Thailand‘s CCIB is actively working with Binance to combat “pig butchering scams,” fraudulent romance-investment hybrid schemes responsible for stealing millions from unsuspecting victims. He highlighted successful enforcement operations, such as the “Don’t Trust Anyone” initiative, which led to multiple arrests and substantial asset seizures.

The Future of Crypto in Thailand

Despite regulatory crackdowns on illicit operations, Thailand remains a key player in the global crypto industry. The country ranks 16th in the 2024 Chainalysis Global Crypto Adoption Index, with $50 billion worth of digital assets traded between July 2023 and July 2024.

The Thai SEC is actively revising cryptocurrency investment regulations for mutual funds and private equity firms, aiming to attract legitimate institutional investors.

Lian pointed out that Thailands regulatory stance sits between Singapore and China, meaning it is not as permissive as Singapore but also not outright banning crypto like China.