Thailand has officially granted licenses to three cryptocurrency exchanges and one broker-dealer. Two exchanges have been rejected and one is still being reviewed. These seven companies have been temporarily allowed to operate in the country. Two of them will now begin closing down their businesses.
The Thai Securities and Exchange Commission (SEC) announced on Tuesday the results of the applications for crypto business licenses. Seven companies applied for a license and have been allowed to operate their crypto businesses while the regulators reviewed their applications.
The country's ministry of finance "has granted digital asset business licences to four applicants," the Thai SEC detailed, noting that two applications have been rejected and one is still under review.
Three crypto exchanges and one broker-dealer have received licenses. The three approved exchanges are Bitcoin Exchange Co. Ltd. (Bx), Bitkub Online Co. Ltd. (Bitkub), and Satang Corporation (Satang Pro). The approved broker-dealer is Coins Th Co. Ltd.
Meanwhile, the license application filed by local crypto exchange Coin Asset Co. Ltd. is still being reviewed but the company is permitted to keep operating while the decision has not been made. The delay is due to "a change of company executives, which is material information for the consideration of the application," the commission described.
Two Crypto Exchanges Closing
The applications for crypto exchange licenses filed by Cash2coin Co. Ltd. and Southeast Asia Digital Exchange Co. Ltd. (Seadex) have been rejected. The Thai SEC revealed:
The applicants failed to meet the approval criteria regarding important work systems.
The commission added, "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."
The two businesses have been notified of the closing down procedure by the Thai SEC.
The country's ministry of finance is allowing both of them to continue operating until Jan. 14 "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 SEC noted. The two are required to return customer assets and notify the commission of the results. However, the regulator clarified:
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.
