Home » Thai regulator introduces KYC ‘physical identification’ process in encryption exchanges
News

Thai regulator introduces KYC ‘physical identification’ process in encryption exchanges

Bitstamp ready to enter the US market after incredible growth.svg .svgxml
Bitstamp ready to enter the US market after incredible growth.svg .svgxml

legal regulation

Thai regulator introduces KYC ‘physical identification’ process in encryption exchanges

Digital currency exchanges are due in July this year.

Thailand is introducing new strict laws to govern digital currency service providers in the country, according to a Bangkok Times report on Monday. According to the report, the Anti-Money Laundering Office (AMLO) requires local encryption exchanges to implement customer physical identification through a “dip-chip” machine that requires customers to be physically present.

Over the past quarter, the country has seen a boost in cryptocurrencies in exchanges as the younger generation resembles the industry, but the numbers could decline in terms of new laws. Dip-chip machines will be introduced in September, having previously been used in gold and jewelry stores.

The new laws will come into force in July this year and are expected to slow the overall growth of cryptocurrencies in the country. Speaking about the effect of the new rules, Poramin Insom, co-founder and director of Thailand-based encryption exchange, Santang Corp, said:

“Most digital asset exchanges are still busy preparing their systems to adapt to the growing number of customers as new account applications continue to arrive. However, this growth may slow down if the application process becomes more complicated.

Currently, local exchanges only require customers to complete their data electronically and submit their documents online to register on the platform. However, the new ‘dip-chip’ system will require Thai citizens to scan a chip in their national identifications on physical machines to register and exchange digital currency in the country. In addition to collecting information from users, the new rules also aim to prevent foreign customers from accessing local exchanges and prevent money laundering.

The report further states that digital asset intermediaries in the country will discuss the issue at the Digital Asset Traders Association of Thailand forum to be held later this month. The self-regulated organization aims to “further discuss issues with regulators and government entities” in charge of digital assets in the country, such as the SEC.

However, the law also stipulates that exchanges must report any suspicious transactions to the relevant authorities and report transactions worth more than 1.8 million Baht (~ $ 58,000).

Lujan Odera

Lujan is an author and publisher of blockchain technology and digital currency. He has worked in the field of digital currency and blockchain technology since 2015, which helped him gain enough experience to be the writer he is today. It is known for its simple writing style that allows beginners to understand the field in the simplest way.

Leave your vote

0 points
Upvote Downvote

Total votes: 0

Upvotes: 0

Upvotes percentage: 0.000000%

Downvotes: 0

Downvotes percentage: 0.000000%

Prices

Currency/Crypto Conversor

EUR

Powered by Coinmotion

Crypto Map Prices

Hey there!

Sign in

Forgot password?
Close
of

Processing files…