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Thailand Tightens the Noose in Crypto KYC Compliance through ID Checks

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Thailand Makes ICOs Legal, Looking to Regulations for STOs
Thailand Makes ICOs Legal, Looking to Regulations for STOs

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Thailand has imposed a new crypto regulation. Users seeking to open accounts on exchanges will have to be physically present.

The Anti-Money Laundering Office (Amlo), a regulator for Thailand, has stated that local crypto exchanges will have to become stricter in verifying customer details. Exchanges will have to use a ‘dip chip machine that requires the physical presence of an account holder. According to a Bangkok post, the new KYC law will come into effect in September.

Thailand’s crypto laws

The current Thailand crypto market necessitates that customers open their accounts online. For these exchanges to approve accounts, they use documents that customers have submitted in compliance with the Thai Securities and Exchange Commission (SEC) and the know-your-customer (KYC) process.

The documents submitted by customers also need to be approved by the relevant authorities. Approval depends on the authenticity of documents and whether a customer lives in a jurisdiction where crypto trading is legal.

According to Poramin Insom, the co-founder and director of Satang Corp, crypto exchanges must report transactions worth more than $58,000 in compliance with anti-money laundering laws.

The anti-money laundering law was passed in 1999, and it necessitates firms operating in the financial sector to report all suspicious transactions. Firms are also required to document all transactions and maintain the records for five to ten years.

The laws also affect gold trading, as customers will have to show their ID cards when purchasing gold worth more than 100000 baht in cash. However, most gold shops in the country already use ‘dip chip’ machines that verify customer identities. Transactions worth more than 2 million baht also need to be reported to Amlo, alongside any suspicious activity.

Thai’s growing crypto market

Cryptocurrency trading in Thailand has been growing tremendously. Retail traders in the jurisdiction have been registering with exchanges after one of the leading crypto exchanges in Thailand, Bitkub, resumed operations.

Bitkub has earlier received a restriction from the Securities and Exchange Commission to seize opening new trading accounts. This was after the exchange reported three outages on the site at the beginning of the year, a time when cryptocurrencies were in a bullish trend.

Thailand has also been ranked among the leading countries in the development of a CBDC. The country is launching a digital baht that will be a digital currency regulated by the country’s central bank. This development is propelling the country’s growth towards creating a sustainable and mature crypto environment.

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