Key Highlights
- Thailand froze over 10,000 suspicious crypto accounts to fight money laundering.
- The “Speed Bump” system temporarily holds large transactions and adds extra verification checks.
- Mule accounts are the main target, used by criminals to move illegal money into crypto.
Thailand has reportedly frozen more than 10,000 cryptocurrency accounts that seemed suspicious to fight money laundering, using a new system called the “Speed Bump,” developed by the Thai Digital Asset Operators Trade Association (TDO).
The development was confirmed by Att Thongyai Asavanund, the chairman of the TDO and CEO of KuCoin Thailand, according to a local report.
According to Asavanund, this system focuses on mule accounts, which are bank or digital accounts that criminals use to move illegal money into cryptocurrency platforms quickly. Transactions over 50,000 baht are temporarily held under the Speed Bump, which gives extra time for verification before money is released.
How criminals use the mule accounts
The mule accounts are reportedly one of the biggest weaknesses in the Thai crypto system. Criminal groups often spread their money through many bank accounts before later combining it into one and then sending it to a crypto exchange.
Once the fund is in the exchange, it is quickly changed into digital assets and sent overseas, which makes it very hard for the authorities to track.
“We may see the wallet address and the movement on the blockchain, but we often do not know who actually controls it,” Asavanund said, as he highlights that knowing the real owner behind a crypto wallet is still very difficult. This situation was what brought about the design of the “Speed Bump.”
Implementing the Speed Bump measure
The Speed Bump system is designed to slow down any suspicious transactions. During the period that these funds are on hold, the users must pass an extra background check, like video verification, before the funds are released.
This gives exchanges and banks more time to find and stop illegal activity. So far, this has led to thousands of accounts being frozen because they were suspected of being mule accounts.
Cooperation among authorities and exchanges
Meanwhile, Thailand’s authorities and crypto companies have been reportedly working together for years to fight cybercrime and fraud related to digital assets. The TDO coordinates with regulators to link suspect databases with the Bank of Thailand and law enforcement to check high-risk individuals.
In addition, exchanges are using blockchain tools to track wallets and see if they are on international watchlists. The industry is also applying the Travel Rule, which requires sharing information about both the sender and the receiver in crypto transfers. This helps make transfers more transparent and harder for criminals to use.
However, while these measures help stop crime, they can slow down normal users. People may face longer processing times, temporary account holds, or extra identity checks. Even with these challenges, the TDO says these rules are needed to protect users and keep Thailand’s crypto market safe.
Also Read: India’s Crypto Crackdown is Working Perfectly. That’s Exactly the Problem
