Crypto probe in Thailand flares up
Binance, the world’s biggest crpyto exchange, said Thailand has one of the largest global crypto legals requests, with over 1,800 investigation requests last year alone.
Of the total 175,000 law enforcement requests from international agencies, that number is relatively high compared with 65,000 last year all total from all agencies globally.
The reported requests cover a wide range of complaints, including investment fraud, account hacking and money laundering. Binance mentioned that just like the rise in crypto adoption, illicit activities using crypto, including money laundering, could also rise.
To launder money using cryptocurrency, most traders will convert fiat to stablecoin, and after that transfer it quickly to an offshore digital asset exchange and exchange back to cash.
There are multiple such methods, some of which make sure to use a mule account to avoid being tracked, so that the funds can be first wire transfered to a mule account and then when it reaches a crypto account transfered to stablecoins before it is converted back to cash again, said Jarek Jakubcek, head of law enforcement training at Binance.
To respond to the new challenges, Binance has worked closely with cyberpolice in each country to seek and investigate crimes, he said.
“At Binance, we understand that securing the digital environment can only be achieved through the collaborative efforts of the public and private sector and we are committed to enabling and driving collaborative efforts.” In the quest for justice in the digital realm, broad cooperation and commitment is required from industry, and we look to ensure the momentum continues,” Mr Jakubcek said.
It is increasingly important for law enforcement officers to possess current skills and knowledge in crypto investigative matters, he said.
In his opinion, the Thai police are rather proactive in investigation and follow-up of numerous complaints. If the private sector cooperates, then the investigation will be success too, Mr Jakubcek said.
“More money — more criminals — more fake.” Investors should be cautious, exercise prudence, and use technology knowledge to prevent unauthorized access to an account as best as possible. Education and awareness will prevent being scammed to some extent.”
A defence used by Binance is to verify a customer’s identity through know your customer processes.
The locally regulated exchange, Binance TH, has been in close touch with the Securities and Exchange Commission and the Bank of Thailand to detect any suspicious activities.
“The combating of crypto crimes is not only an action that one individual company can take,” said Nirun Fuwattananukul, the chief executive of Gulf Binance.
“It requires a collaborative, collective approach across different stakeholders including financial institutions, technology providers, law enforcement agencies and regulatory authorities,” he said.
Thailand was able to address sophisticated crypto-related schemes through regulatory frameworks in combination with cutting edge technology and cross-border collaboration, as was demonstrated in its experience with Binance, all while keeping Thailand at the forefront of the digital finance scene.
“This is not [just] only making sure we enforce the laws, we build trust in our digital financial ecosystem for generations of the future,” Mr Nirun said.