Govt warns of crypto vote scam

Deputy Prime Minister Wissanu Krea-ngam has been saying since March that he doesn't understand cryptocurrency, but told the media on Thursday bitcoins could be used to buy votes if the government decides to have an election. (File photo by Thiti Wannamontha)

Cryptocurrency transactions could be manipulated to buy votes in the general election, Deputy Prime Minister Wissanu Krea-ngam warned Thursday.

Mr Wissanu said the government had been alerted by other countries to keep a close watch on crytocurrency transactions otherwise Thailand could end up becoming a haven for money laundering, attracting transnational crime networks to launder ill-gotten money via trading in bitcoin.

Thailand has also been warned that bitcoin transactions could be manipulated to buy votes ahead of the poll, Mr Wissanu said.

"Cryptocurrency is a new, complex and big issue. It is a mystery. The cabinet needs some time to understand it before deciding whether to let it take its natural course or control it," Mr Wissanu said in a keynote speech the Symposium Thailand 4.0 "Fintech & Cryptocurrency vs Law Enforcement" in Bangkok.

He said cryptocurrency is a double-edged sword with both advantages and disadvantages. It is easy to use, and can be traded with other users around the world, though there are fears of fraud, hacking and errors in the system, Mr Wissanu said.

The government does not oppose cryptocurrency transactions, but investors are urged to keep abreast of information to avoid being cheated, he said.

Jessada Sookdhis, president of the Thai Fintech Association, also warned investors about "pump-and-dump" scams that are widespread in other countries.

These typically involve parties whose identities are hidden, acquiring low or zero-value assets and then bidding up the price in such a way that genuine investors find themselves tempted to part with hard-earned cash for fake promises.

After several rounds of public hearings, a royal decree regulating digital assets took effect on May 14.