Thai Financial Regulatory Agency Grants Four Crypto Exchanges Licenses While Denying Two
The Thai Securities and Exchange Commission (SEC) granted four licenses for companies that wanted to operate in the cryptocurrency market. These firms applied for the licenses in order to start their own business in the country. The information was released by the SEC in an official statement.
These companies are Bitcoin Exchange Co. Ltd, Bitkub Online Co. Ltd, Satang Corporation and Coins TH Co. Ltd. Bitcoin Exchange, Bitkub Online and Santang Corporation and cryptocurrency exchanges. Coins TH will be working as a cryptocurrency brokerage.
Although this is very positive for the crypto space in the country, there were two other firms that were not granted a license. Cash2coin and Southeast Asia Digital Exchange Co. (SEADEX) were rejected. Apparently, these two companies were not able to meet the required approval criteria required by the SEC. Indeed, the rejection included improper KYC procedures and some issues to meet cybersecurity standards.
These companies will be able to keep operating in the market until January 14, 2019, just a few days from now. After it, they will have to shut their operations down. As soon as they reach the necessary requirements, these companies can apply again to get a license.
A few months ago, regulatory agencies in the country released a new website in which regulated Initial Coin Offerings (ICOs) could launch their own tokens. The intention is to allow the market to grow taking care of investors avoiding scams and fraudulent activities.
Thailand’s regulatory agencies are not the only ones that are currently becoming more involved in the crypto space. In the United States, the U.S. Securities and Exchange Commision (SEC) is also starting to pay closer attention to ICOs and other firms.
In the United Kingdom, the Financial Conduct Authority (FCA) is actively analyzing companies and controlling that all of them are operating with the necessary licenses and under the law.
Due to the fact that digital currencies expanded at very fast rates in 2017, also the number of scams and fraudsters grew. Several investors lost their funds after trusting companies that were simply Ponzi or Pyramid schemes.