The Thailand Securities and Exchanges Commission (SEC) has continued its recent effort to provide clarity to the country’s crypto ecosystem. On Tuesday, the regulatory body announced its decision about seven crypto-related firms that applied for a license to operate within their jurisdiction.
A press release by the SEC shows that the Thai Finance Ministry which reviewed the applications decided to issue an operating license to four of the seven applicants.
Three of the approved businesses are cryptocurrency exchanges (Bitcoin Exchange Co. Ltd. (Bx), Bitkub Online Co. Ltd. (Bitkub), and Satang Corporation (Satang Pro) while one of them is a crypto broker-dealer (Coins Th Co. Ltd).
Out of the remaining three applicants, the report confirmed that one of them (a crypto exchange), will have to wait longer to get approved or rejected by the regulators. The company, CoinAsset Co. Ltd is said to have changed its “company executives” to meet up with the regulator’s requirement for acquiring the license.
For this reason, the Thai SEC has allowed the company to continue operating for the time being, until a decision is reached on their application.
Two Crypto Exchanges To Shut Down in Thailand
While the companies mentioned earlier are in line to continue operating in Thailand, two firms, Cash2coin Co. Ltd. and Southeast Asia Digital Exchange Co. Ltd. (Seadex) will shut down in the coming week.
The regulators cite that the firms have failed to meet the “approval criteria regarding important work systems.” Issues with crypto custody, Know-Your-Customer (KYC) and cybersecurity were reportedly not up to standards defined by the Thai SEC.
For these deficiencies, the unapproved exchanges were instructed to stop operating before Jan 14, and also to notify and move client assets to other exchanges, as decided by the customers. However, the also left the door open for the rejected firms to apply in the future by writing in the release,
“The application rejection this time does not invalidate their right to apply for a digital asset business license in the future as long as the application criteria are met.”
With the award of a license to qualified cryptocurrency exchanges, Thailand remains on track to providing a haven for the growth of its crypto and blockchain industry.
In recent times, the Thai SEC deputy secretary said that the agency is still facing difficulty with classifying security token offerings (STOs). However, the agency has gotten a grip on the ICO industry and plans to create a portal for listing approved projects.