Cyber Monday Sale! 50% Off All Access

Thailand Opens Up to Four Crypto Exchanges The move will boost expansion of more crypto exchanges in the country

By Komal Nathani

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Asia Pacific, an international franchise of Entrepreneur Media.

Pixabay

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.

Komal Nathani

Former Correspondent, Entrepreneur Asia Pacific

A firm believer of hard work and patience. Love to cover stories that hold a potential to change the momentum of business world. Currently, a part of all-women web team of Entrepreneur’s Asia Pacific edition to jig the wheel of business journalism!

Science & Technology

AI for the Underdog — Here's How Small Businesses Can Thrive With Artificial Intelligence

How small businesses can harness the power of AI to streamline operations, enhance customer experiences and drive growth.

Business News

Tesla Cybertruck Factory Workers Reportedly Told 'You Do Not Need to Report to Work' for 3 Days This Week

According to a memo first viewed by Business Insider, Tesla factory workers in Austin were reportedly told to stay home Tuesday through Thursday.

Business News

There Are Certain Words That Will Break ChatGPT. I Tried Them — Here's What Happened.

ChatGPT appears to be unable to process requests that contain a few notable names.

Fundraising

'Elevator Pitch' Meltdown: Watch the Moment That Broke This Entrepreneur's Brain

On this episode of 'Entrepreneur Elevator Pitch,' an investor makes an offer that leaves a contestant speechless.

Leadership

Leadership vs. Management: How to Understand the Difference and 6 Ways to Bridge the Gap

Here are the key differences between leadership and management, highlighting their complementary roles and providing six strategies to develop managers into future leaders.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.