Thailand Freezes 10,000 Crypto Mule Accounts as New ‘Speed Bump’ Rule Targets Money Laundering

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Thailand Freezes 10,000 Crypto Mule Accounts as New ‘Speed Bump’ Rule Targets Money Laundering

Thailand is increasing its efforts to fight money laundering in the digital asset sector, specifically focusing on accounts used by money mules.

Thai digital asset exchanges have blocked over 10,000 accounts flagged as potentially suspicious, following the implementation of a new security measure called “Speed Bump,” as reported by the Thai Digital Asset Operators Trade Association (TDO).

Major Anti-Money Laundering Push

I recently spoke with Att Thongyai Asavanund, the CEO of KuCoin Thailand and chair of the TDO, for the Bangkok Post. He emphasized that mule accounts continue to be a major weak point in the crypto world, posing a significant risk to the entire ecosystem.

Criminals usually hide money from illegal activities by sending it through many different bank accounts. They then combine these funds into one account to send to a cryptocurrency platform. Once the money reaches the platform, it’s quickly exchanged for digital currencies and sent to another country.

While blockchain technology lets people track wallet activity and monitor transactions, it’s still hard to figure out who actually *owns* a particular wallet, according to Asavanund. He explained that even though you can see a wallet’s address and what it’s doing, identifying the real person behind it is often very difficult.

To help stop the flow of potentially illegal money, the TDO has implemented a system called ‘Speed Bump’. This temporarily holds any transfer of 50,000 baht or more for 24 hours. During this time, users need to verify their identity with extra checks, including a video call, before the money will be released.

Asavanund explains that the delay is intended to slow down criminals who quickly transfer money through the system before their activity is noticed. The organization reports that the improved screening has already resulted in the suspension of thousands of accounts believed to be used for illegal money transfers.

Running a cryptocurrency business is becoming more expensive and challenging. Companies are dealing with the costs of staying compliant with regulations, the pressure of managing blocked accounts, and the need to investigate potentially illegal activity. To get around these safeguards, criminals are trying to find new people to open accounts after their existing ones are flagged and shut down.

Beyond the Speed Bump initiative, the TDO is working with officials to improve overall financial security. This involves connecting databases of suspected individuals with the Bank of Thailand’s payment system and law enforcement, allowing them to better identify and monitor people considered high risk based on various factors.

Other Industry Measures

Last August, Thailand introduced TouristDigiPay, a program that lets visitors exchange cryptocurrency for Thai baht to use while traveling in the country. To participate, tourists need to create an account with an approved digital asset and e-money provider and verify their identity with thorough checks.

Last month, the government decided to waive taxes on cryptocurrency earnings for Thai traders for the next five years. This move is intended to keep more investment money within Thailand, after stricter taxes on foreign income led to a drop in funds coming into the country. At the same time, Thailand’s tax agency is getting ready to use a new system, called the Crypto-Asset Reporting Framework, which will allow for the international sharing of information about digital asset accounts.

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2026-03-11 01:38