Thailand threatens Facebook over crypto scams and other fraudulent ads

August 22, 2023 Coin Telegraph

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Thailand’s digital minister said he would seek a court order to shut Facebook in the country unless it takes action on the alleged scams.

Thailand is planning to seek a court-issued shutdown order against Facebook unless it takes steps to deal with alleged investment and crypto scam ads on its platform.

On Aug. 21, the Ministry of Digital Economy and Society (MDES) stated over 200,000 people had been duped by Facebook ads that touted crypto scams, investing in fake businesses and faked government agencies such as the Securities and Exchange Commission.

Popular tactics used by the scammers included crypto investment and trading scams, MDES claimed. Some ads also allegedly used images of celebrities and well-known financial figures along with promises of up to 30% daily returns to lure people into the schemes.

MDES Minister Chaiwut Thanakamanusorn said the ministry had been in talks with and sent a letter to the Meta-owned platform over the issue but claimed it's failing to screen advertisers.

*Chaiwut Thanakamanusorn at an Aug. 21 press conference regarding the ministry’s planned court action against Facebook. Source: MDES*

The ministry is currently gathering evidence of the scam ads which it said numbered over 5,300 — at the end of the month, it’s ready to ask a court to shut down Facebook within seven days.

The ministry warned on how such scams typically operate saying consumers should be wary of promises of high and guaranteed returns along with ads using images of well-known figures.

Investments that pressure or give incentives to quickly invest with limited offers should also be approached with caution as well as businesses or platforms with no verifiable information.

Cointelegraph contacted Meta but did not immediately receive a response.

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South Korean Shinhan Bank completes stablecoin remittance pilot with Asian partners

July 18, 2023 Coin Telegraph

Coin Telegraph

The bank used the Hedera network to settle payments in South Korean, Thai and Taiwanese currencies in real-time in its second stablecoin pilot project.

South Korea’s Shinhan Bank has completed its second proof-of-concept using stablecoins for international remittances. Siam Commercial Bank’s SCB TechX unit and an unnamed Taiwanese financial institution also participated in the project.

The project carried out real-time settlement and foreign exchange integration with the banks’ national currencies on the Hedera network. The project was compatible with the Ethereum Virtual Machine (EVM), opening it up to use by a host of other stablecoins.

Shinhan Bank conducted its first proof-of-concept project in November 2021 in conjunction with South Africa’s Standard Bank, although that bank’s identity was also not immediately disclosed.

Shinhan Bank explained at the time that it minted a pool of South Korean won-backed stablecoins, and the partnering bank minted a stablecoin in its local currency. A user was able to buy Shinhan-minted stablecoins and send them to an account at the partner bank. That bank provided the funds in the locally denominated stablecoin, which the user could then exchange.

Byunghee Kim, head of the blockchain division at Shinhan Bank, said, “We are pleased to have demonstrated how the use of Hedera’s EVM-compatible technology helps eliminate intermediaries, reduce costs, and speed up the remittance process."

1/ In a continuation of their work on #DLT-enabled cross-border remittances, @ShinhanBankENG - in collaboration with SCB TechX & other financial institutions - has today announced the successful completion of a #stablecoin remittances PoC pilot on #Hedera.https://t.co/OUAxOfU2U4
— Hedera (@hedera) July 18, 2023

Remittances are noncommercial cross-border payments. They are typically slow, expensive and hard to track. An International Monetary Fund official stated earlier this year that remittance providers collect $45 billion in fees annually.

The use of stablecoins provides an alternative to central bank digital currency (CBDC) in Web3 remittance solutions. There are numerous CBDC cross-border payment projects, including some designed specifically for remittances, but few CBDCs have been launched, so that technology remains tentative. Meanwhile, stablecoin-based remittance solutions are becoming more common, especially in Latin America.

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Thai SEC bans the use of customer crypto assets for lending and investment

July 3, 2023 Coin Telegraph

bitcoin regulation

Investor protection regulations have been under discussion since September 2022 amid the crypto lending crisis that saw firms such as BlockFi and Celsius declare bankruptcy.

Thailand’s Securities and Exchange Commission (SEC) has issued new rules for digital asset service providers focused on investor protection.

The new guidelines require digital asset service providers to offer adequate warnings highlighting risks associated with cryptocurrency trading. All platforms must display a message that reads:

“Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose the entire investment amount.”

The warning message must be clearly visible, and before customers can use the service, the business operator must arrange for the users to give consent and acknowledge the risks.

Apart from a trading risks disclaimer, the new guidelines also prohibit service providers from using customers’ funds for lending or investment.

The Thai SEC has banned crypto lending services, thus prohibiting crypto platforms from offering any form of return on deposited crypto by customers. The SEC’s aim is to increase protection for investors from the risks of lending services. The new regulations are set to come into effect from July 31, 2023.

The discussion around new regulations for investor protection began on Sept. 1, 2022, when the SEC approved the need for security warnings by cryptocurrency business operators to disclose the risks of trading cryptocurrencies. The rules prohibiting digital asset business operators from providing services or supporting deposit-taking and lending services were discussed during meetings on Dec. 1, 2022 and May 11, 2023.

The new investor protection rules come after a massive crypto lending crisis during the 2022 bear market. Several crypto lending firms, which collected billions in customer deposits by promising hefty returns, went bust during the bear market. Leading lending firms, including Celsius and BlockFi, filed for bankruptcy, resulting in investor money getting stuck in bankruptcy proceedings.

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Thailand launches retail CBDC pilot with 2 banks and Singapore payment service

June 12, 2023 Coin Telegraph

CBDC

The project, delayed from last year, will enlist bank employees and nearby businesses for the pilot. Each payment provider has launched its own app.

The Bank of Thailand will launch a retail central bank digital currency (CBDC) pilot project in a regulatory sandbox this month. Three payment providers will take part, according to local media. The project will involve up to 10,000 users and run through August.

Bank of Ayudhya (Krungsri), Siam Commercial Bank and Singapore-based payments service provider 2C2P will partner with the Thai central bank on the project. Each of those organizations has made an app available to selected users that includes a wallet and a QR code scanner.

Krungsri will enlist up to 2,000 staff members to participate in the project, along with about 100 merchants located around the bank’s headquarters. It will expand the project to its Ploenchit branch as well. Krungsri Innovate managing director Sam Tanskul said:

“The bank needs to determine a strategy to differentiate retail CBDC from [its] PromptPay service.”

Siam Commercial Bank’s pilot will operate similarly to Krungsri’s, with staff and neighboring merchants participating.

The pilot was announced in August and was originally scheduled to launch in 2022. The Bank of Thailand has called the project a “pilot to learn” rather than a pilot launch. The central bank has no official plans to launch a CBDC.

Twenty commercial banks in #HongKong, #China, #UAE and #Thailand used #mBridge and #CBDC to conduct payment and foreign exchange payment-versus-payment transactions on behalf of their corporate clients. Read the full report https://t.co/PhTtmQ8Lj4 pic.twitter.com/TE6Dv0dszr
— Digital Pound Foundation (@digitalpoundfdn) October 27, 2022

The Bank of Thailand announced it was developing a wholesale CBDC in 2018. It participated in the Bank for International Settlements’ mBridge cross-border payment project and Project Inthanon-Lion Rock project with the Hong Kong Monetary Authority.

In March, the country waived corporate income tax and value-added tax for companies that issue investment tokens. A government spokesman said Thailand could lose about $1 billion in revenue, but it expected investment tokens to generate $3.7 billion over the next two years.

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Binance and Gulf Innova to launch crypto exchange in Thailand in Q4 2023

May 26, 2023 Coin Telegraph

Binance

Binance and its Thai partner Gulf Innova have secured digital asset operator licenses in Thailand to launch a new crypto exchange.

Cryptocurrency exchange Binance continues expanding its global reach by securing new regulatory approvals in Thailand.

Gulf Binance — a joint crypto venture of Binance and Gulf Energy’s innovation arm Gulf Innova — has received digital asset operator licenses from Thailand’s Ministry of Finance. The licenses enable the firm to operate a crypto exchange regulated by the country’s Securities and Exchange Commission.

Announcing the news on May 26, Binance said Gulf Binance is set to launch a new digital asset exchange in Thailand by Q4 2023.

The new crypto venture will combine Binance’s digital asset expertise with Gulf’s deep understanding of the Thai market. The companies have been closely working together for more than a year to explore the opportunity to launch a local digital asset exchange.

Thai billionaire Sarath Ratanavadi’s Gulf Energy first reached an agreement with Binance to study such an opportunity in January 2023.

“By harnessing Binance’s expertise together with Gulf’s established local presence and network, Gulf Binance aims to showcase the full potential of blockchain technology to meet the needs of Thai users,” Binance’s regional head of Asia, Europe and Mena, Richard Teng, said.

The executive also said Thailand has emerged as a crypto-friendly country, demonstrating a strong commitment to crypto and blockchain.

As previously reported, Gulf Energy is also known for making strategic investments in Binance’s United States-based arm Binance.US. In April 2022, the firm disclosed that it invested in “Series Seed Preferred Stock issued by BAM Trading Services,” which is the operator of Binance.US.

The news comes amid Thai regulators moving to implement a set of regulations to protect cryptocurrency investors. In January 2023, the financial regulator introduced new rules for crypto custody services, requiring all crypto custodians to have a contingency plan in case of unforeseen events.

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10 Southeast Asian Nations Challenge Dollar Dominance With Push for Local Currencies

May 14, 2023 Bitcoin.com

Coinbase remains ‘100% committed’ to US market: Armstrong

May 5, 2023 Coin Telegraph

Australia

The Coinbase CEO has a lot of faith in Congress in making a “clear rule book” for crypto firms to follow. But the SEC? Not so much.

United States-founded cryptocurrency exchange Coinbase has no plans to move its operations out of the U.S., CEO Brian Armstrong told investors in an Q1 earnings call.

On May 5, Armstrong assured shareholders the firm is “100% committed” to the U.S. market over the long term despite regulatory uncertainty in the U.S.

“So let me be clear, we're 100% committed to the U.S. I founded this company in the United States because I saw that rule of law prevails here. That's really important, and I'm actually really optimistic on the U.S. getting this right.”

The “optimism” alluded to by Armstrong comes from his confidence in Congress soon passing a clear set of rules for crypto firms to follow:

“When I go visit DC, there is strong bipartisan support for Congress to come in and create new legislation that would create a clear rule book in the U.S. and I think it's really important for America to get this right.”

However, Armstrong’s comments weren’t entirely “optimistic.”

The chief executive is concerned about the unpredictable enforcement action of the Securities Exchange Commission, which comes in light of the firm being served with a Wells Notice by the securities regulator in late March:

“Despite our ongoing engagement with the commission, they have not been as clear about what their specific concerns are with Coinbase as we might like, and so I have to refrain from speculating too much.”

“It's especially difficult to predict the timeline of any potential SEC litigation that we might face,” Armstrong added.

The troubles led Coinbase to file an action in a U.S. federal court seeking to compel the SEC to answer a petition that has been pending since July.

Today, to provide greater transparency in our long-standing engagement with the SEC, we are sharing our response to the Wells notice we received last month. https://t.co/aquuWmxmRM
— Coinbase ️ (@coinbase) April 27, 2023

The back and forth comes as Coinbase launched Coinbase International Exchange (CIE) on May 2, which prompted many pundits to believe that Coinbase was looking for an escape route from the U.S.

The exchange is open to customers in 30 countries worldwide, including Singapore, Hong Kong, El Salvador, Philippines, Thailand and Bermuda — where CIE is now licensed from.

Today Coinbase launched Coinbase International Exchange @CoinbaseIntExch and will begin by offering BTC & ETH perpetual futures settled in USDC with up to 5x leverage to institutional clients in eligible jurisdictions outside of the U.S.https://t.co/OzhbgJlZ2K
— Coinbase ️ (@coinbase) May 2, 2023

Armstrong said the European Union is “in front” in terms of regulatory progress with its Markets in Crypto Assets (MiCA) legislation set to enter into effect in mid-2024 or early 2025:

“They've adopted comprehensive crypto legislation called MiCA, creates a single clear rule book for the entire region. It's pretty powerful.”

“I just got back from a trip from the U.K. and D.C. Both of those, both have draft bills in the works that are working on things like around stable coins and market structure Singapore, Hong Kong, Australia, Brazil, all are essentially following in this direction,” Armstrong added.

The CEO’s remarks come as Coinbase managed to increase its revenue 22% and slashed its net income loss over $475 million to $79 million in Q1.

Our Q1'23 financial results are in and our letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf pic.twitter.com/4iWAPGZNMh
— Coinbase ️ (@coinbase) May 4, 2023

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Pheu Thai Candidate Promises Digital Currency Airdrop of $300 to Every Citizen in Thailand if Elected

April 7, 2023 Bitcoin.com

Thai political party looking at PM race promises $300 in crypto upon victory: Report

April 7, 2023 Coin Telegraph

Thai political party looking at PM race promises 0 in crypto upon victory: Report

Coin Telegraph

The country's next general election will be held on May 14, at which time all 500 seats in Thailand's House of Representatives will be up for grabs.

The Pheu Thai Party, a political party in opposition to the current Thailand prime minister's, has reportedly proposed giving nearly every citizen of the country roughly $300 in digital currency should it win the next election.

According to an April 7 report from the Bangkok Post, the Pheu Thai Party announced at an April 5 campaign event that it planned to give all Thai residents 16 years and older a stipend of 10,000 baht — roughly $292 at the time of publication. One of the party’s candidates for prime minister, Srettha Thavisin, reportedly described the initiative as a stimulus project aimed at helping the local economy using blockchain technology.

The Pheu Thai Party vows to give 10,000 baht to all Thais aged 16 years and over via digital wallets on Jan 1, 2024 if it forms the next government. https://t.co/B6hntAL7jz pic.twitter.com/Zz82fw6FDm
— Bangkok Post (@BangkokPostNews) April 7, 2023

Thailand’s next general election will be held on May 14, at which time all 500 seats in the country’s House of Representatives will be up for grabs. Current prime minister Prayut Chan-o-cha, a member of the United Thai Nation Party, is eligible to hold his position until 2025 if selected, following a decision from Thailand’s Constitutional Court regarding his term limit.

Though crypto exchanges and trading are generally permissible in Thailand, the country’s Securities and Exchange Commission has been considering a ban on staking and lending services and established stricter rules for crypto custody providers. The country’s central bank in 2021 also warned crypto investors about stablecoins pegged to the Thai baht.

With Thailand’s population at more than 70 million, roughly 50 to 60 million of which are older than 16, the crypto project could cost the government anywhere from $14 to $18 billion.

Thavisin’s plan to distribute funds equally to residents echoes that of United States presidential candidate Andrew Yang in the 2020 elections. Yang proposed that all eligible people in the U.S. receive $1,000 every month as part of a universal basic income initiative.

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