Thailand’s SEC Awards Licenses To 4 New Crypto Firms

The Ministry of Finance in Thailand recently granted digital asset business licenses to four new crypto firms while rejecting two other applications.

The news was announced on Tuesday by the nation’s Securities and Exchange Commission (SEC) which stated that crypto companies are currently regulated under the “Emergency Decree on Digital Asset Businesses B.E. 2561 (2018).”

The four approved firms which received licenses include three new crypto exchanges: Bitcoin Exchange, Bitkub Online, Satang Corporation (Satang Pro) and one crypto-broker dealer – Coins TH Co according to the to SEC.

The firms that were unsuccessful were Cash2coin and Southeast Asia Digital Exchange (SEADEX). The SEC stated that the two firms did not meet the required standards, adding that custody systems and know-your-customer (KYC) processes were “inconsistent”. They also added that the two firms cybersecurity systems could not be verified.

As a result of the rejected applications, both Cash2coin and SEADEX will be required to cease all operations as early as January 14th. They will also have to return all client’s assets under their custody, but they will be allowed to reapply for a license once they meet the SEC’s criteria.

Furthermore, the SEC is currently still in the review process for another application from a firm known as Coin Asset.

The company recently made some executive changes which the SEC considers “material information” for the consideration of a license.

Until such a time where the SEC comes to a decision, Coin Asset will be allowed to continue with business operations.  

Last year July saw the first time where Thailand announced their cryptocurrency licensing rules. It was in that first month that as many as twenty firms applied for their licenses. The SEC’s rules require that any projects that intend on offering crypto-related services need to seek approval from the SEC before starting operations.

Could the advent of SEC’s in countries such as Thailand be healthy for the cryptocurrency market? Let us know your thoughts by commenting below.

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