Thailand Opens Up to Four Crypto Exchanges
January 10 2019 - 4:41AM
ADVFN Crypto NewsWire
The Ministry of Finance in Thailand has granted the licence to
three crypto exchanges and rejected the proposal of two other
exchanges in its review today. In exception, the ministry has also
given a working permit to one broker-dealer.
Thailand’s Securities and Exchange Commission announced the list
of approved applications yesterday in a press release. The seven
companies were reportedly working temporarily in Thailand from the
past few years.
The four applicants that were granted the licences are three
digital asset exchanges: Bitcoin Exchange Co Ltd (BX), Bitkub
Online Co Ltd (BITKUB), and Satang Corporation (Satang Pro). Plus,
one cryptocurrency broker and dealer Coins TH Co. Ltd. says the SEC
Board in a press statement.
Why the Two Applicants Faced Rejection?
The companies that have been denied the permission to operate in
Thailand are Cash2coin Co Ltd and Southeast Asia Digital Exchange
Co Ltd (SEADEX). Both the companies have applied for a digital
asset exchange licence. According to the ministry, “The
applicants failed to meet the approval criteria regarding important
work systems. For example, the systems for custody of client assets
and Know Your Customer (KYC) were inconsistent with the SEC’s
acceptable standards, while the sufficiency of their IT security
and cyber security systems could not be verified.”
Unfortunately, Cash2coin and SEADEX will have to roll down its
shutter in Thailand as they become the subject to business
cessation. However, to ensure proper proceeding of related matters
including notification to the clients regarding asset refunds or
asset transfers to other digital asset operators according to the
clients’ order, the ministry has given them the remand till the
14th of this month.
Regarding clients’ assets under custody, the companies are
requested to transfer or return the assets according to the
clients’ order and notify to results of the matter to the SEC. The
SEC has notified Cash2coin and SEADEX in writing of the required
proceeding. In any case, the application rejection this time does
not invalidate their right to apply for a digital asset business
licence in the future as long as the application criteria are
met.
One Application is Still Underway
The application for a digital asset exchange licence filed by
Coin Asset Co Ltd is still under consideration because there has
been a change of company executives, which is material information
for the consideration of the application. While the Ministry of
Finance is considering the material change, the company may
continue business operation.
Empowering Move for Crypto Startups
The Ministry’s move will boost expansion of more crypto
exchanges in the country as it makes Thailand the most attractive
destination for crypto startups in the Asia-Pacific region. The
year 2018 has turned out to be a successful year with numerous
approvals in ICO regulations.
In June, last year, the country legalized seven
cryptocurrencies, including Bitcoin and Ethereum. It seems likely
that we will witness a growing influx of crypto startups from
neighboring countries like India and China to Thailand this
year.
Source:
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