Thailand SEC’s Crackdown on Unlicensed Cryptocurrency Trading Platforms
In a decisive move aimed at protecting consumers and tackling illicit activities, the Thailand Securities and Exchange Commission (SEC) announced that on June 28, access to five significant cryptocurrency trading platforms will be restricted. This action targets Bybit, 1000X, CoinEx, OKX, and XT.COM, all of which have been identified for operating without the necessary licenses required to serve Thai residents.
The SEC stated that these exchanges were facilitating trading for users in Thailand via their online platforms without proper authorization, prompting the regulator to engage the Economic Crime Suppression Division to initiate legal proceedings.
Commitment to Consumer Protection
The SEC emphasized that this crackdown is part of its commitment to safeguarding investors and preventing the misuse of unregulated platforms for activities such as money laundering. This latest measure is the culmination of escalating regulatory scrutiny, which saw the implementation of new anti-cybercrime legislation in April.
Under the Royal Decree on the Prevention and Suppression of Technological Crime, the Ministry of Digital Economy and Society gained expedited powers to block websites that are deemed suspicious, enhancing the authorities’ ability to take action against unlicensed services catering to Thai investors.
Enhancing Market Stability
Furthermore, the Thai government has ramped up its enforcement efforts, particularly targeting cryptocurrency exchanges operating beyond the reach of local regulations. In an effort to stabilize the domestic crypto market, the Ministry of Finance recently launched G-Token, an innovative blockchain investment vehicle, enabling retail investors to invest in government bonds.
This $150 million initiative represents Thailand’s inaugural venture into tokenized public fundraising, with plans for the G-Token to be accessible via an approved initial coin offering platform, backed by the Finance Ministry as the registrar.
Regulated Digital Assets
It is significant to note that G-Tokens are not permitted to be used as a medium for transactions, firmly delineating regulated digital assets from the volatile landscape of cryptocurrency trading.
Strengthened Regulations for Digital Asset Firms
Alongside these developments, the SEC has tightened regulations surrounding digital asset firms, incorporating more rigorous measures for customer verification, prompt suspension of suspicious accounts, and improved assistance for individuals affected by fraud. Additionally, enhanced accountability has been introduced, extending potential liability to banks, telecommunications companies, and social media platforms if they do not adequately prevent cybercrime across their operations.
