Business-As-Usual For Thailand Crypto Asset Exchanges Despite SEC Shutdown Directive
Business-As-Usual For Coin Asset Despite SEC Shutdown Directive
Thailand’s’ Securities and Exchange Commission (SEC) recently gave out its verdict after reviewing one of the latest applications for cryptocurrency exchange, Coin Asset Co. Ltd.
The commission has banned Coin Asset Company from operating its exchange. They have been issued with directives to shut down the business and refund all its clients. The exchange firm has been functional all this time while its request was still in review.
According to The Bangkok Post, the commission also informed Coin Asset’s CEO, Sivanus Yamdee that should his firm wish to apply for a new license; it would take a minimum of four months to process it.
The CEO confirmed that his firm will be meeting with the SEC to discuss how they can continue with their operations. He was also quoted saying that Coin Asset Co. Ltd cannot withstand an extended processing time. Therefore, it is looking for ways to stay in business because the firm is progressing to greater heights and maintaining client loyalty would not be easy.
He went on to state that with approximately 10,000 customers on board, the daily volume of trading is about 91 million baht which is equivalent to $2.87 million. Other achievements worth mentioning were the unveiling of its crypto ATMs in August 2018. He also cited that Jfin coin, which is Thailand’s first initial coin offering was launched by Jay Mart Plc, which is listed on the Thailand Stock Exchange.
The chief strategy officer for Coin Asset, Arnon Saksri allegedly said that closing down its operations isn’t an option. Saksri was quoted by Bangkok Post saying that, closing Coin Asset was not an option. He stated that in as much as the SEC wants to improve and maintain investor confidence in the way crypto businesses are handled; it has to find the correct way of doing it.
Why Coin Asset Was Banned
In a statement issued by Thai SEC, the reason why Coin Assets application was rejected was due to a change in the firm’s management. This greatly affected the way in which the important work systems would flow. For instance, the systems responsible for KYC (know your customer) and safekeeping of clients assets were not in line with Thai Anti-Money Laundering Office standards. The regulator also stated in detail that out of four directors in charge of regulating important work systems, only one is remaining, the rest have resigned.
After The Ban
Coin Assets still insists on the safety of its security system. They have complied with 2013 international standards: ISO/IEC 27001. Moreover, their KYC procedures are connected to banks in Thailand that have complete anti-money laundering practices in place.
Coin Asset shall continue operating till January 21st and customers have until February 14th to withdraw their funds. This allows ample time for clients to be notified on matters regarding, asset transfers to other operators or refunds. The SEC has also ordered the firm to report the results of the successful return or transfer of assets to the clients.