Following international regulations, Thailand is cracking down on the cryptocurrency market by focusing on shutting down unlicensed crypto platforms.
Regulatory Action
The Thai Securities and Exchange Commission (SEC), in collaboration with the Ministry of Digital Economy and Society, is taking firm steps against digital asset providers who have not registered with them. These unauthorized platforms will be blocked from public access as part of this initiative. Following a meeting of the Technology Crime Prevention and Suppression Committee on April 19th, this move was disclosed, demonstrating the Thai government’s determination to tackle financial crimes that occur online.
Significantly, well-known cryptocurrency exchanges such as Binance, Coinbase, KuCoin, Kraken, and OKX lack regulatory approval in Thailand. Consequently, these widely used platforms may be forced to shut down upon enforcement of the ban.
Public Advisory
The Thai Securities and Exchange Commission (SEC) advises investors to withdraw their funds from unregistered investment platforms prior to the implementation of the ban, in order to minimize potential harm. The SEC strongly cautions against utilizing services from unlicensed operators due to inherent risks. Investors are kindly requested to confirm the registration standing of platforms through the SEC’s “Check First” application before proceeding.
The warning stated,
“The SEC advises the public and investors to exercise caution when dealing with unlicensed digital asset businesses, as they won’t be covered by legal protections. There’s also a risk of falling victim to fraud or becoming unwittingly involved in money laundering activities.”
Global Precedents
Thai officials have made a move aligned with India and the Philippines in regulating offshore cryptocurrency exchanges. India’s Financial Intelligence Unit (FIU-IND) recently imposed penalties on several non-compliant and illegal crypto platforms, including Binance, OKX, Kraken, and Bitfinex. Consequences for these exchanges include restrictions and denial of access to investors.
The Securities and Exchange Commission in the Philippines has limited local usage of Binance’s platforms due to the companies not holding the necessary licenses.
In addition to regulating transactions, authorities in Thailand are focusing on cryptocurrency trading platforms such as eToro, which have been criticized by the Philippine Securities and Exchange Commission for functioning without proper permits. Thai regulators are striving to encourage crypto advancements while safeguarding investors from deceitful schemes.
Thailand’s Crypto Regulatory Landscape
Thailand’s action against unlicensed cryptocurrency platforms signifies a wider pattern of stricter regulations in the international crypto market. The administration aims to protect investors and prevent illegal financial dealings by denying access to unauthorized sites.
Yet, regulators face a challenging task in promoting the expansion of the cryptocurrency sector while ensuring honest business practices. They have granted institutional investors and wealthy individuals access to crypto Exchange-Traded Funds (ETFs), and given retail investors the freedom to invest in real estate or infrastructure-linked digital tokens.
Meanwhile, custodians have been stressed the significance of preparing backup strategies to minimize potential hazards.
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2024-04-23 15:07