Digital asset business licenses were granted to four crypto firms by Thailand’s Ministry of Finance, whereas two other applications were rejected by the Ministry.
The announcement which made clarifications that crypto businesses are regulated under the “Emergency Decree on Digital Asset Businesses B.E. 2561 (2018)” was made by the country’s Securities and Exchange Commission (SEC).
According to the SEC, the four companies granted licenses consist of three crypto exchanges which are Bitcoin Exchange, Bitkub Online, Satang Corporation (Satang Pro), and one crypto broker-dealer Coins TH Co.
The two other firms that were unable to gain a license were Cash2coin and Southeast Asia Digital Exchange (SEADEX). According to the regulator, the two firms failed to meet the standards which are required, for instance, there was inconsistency in the custody systems and know-your-customer (KYC) processes, also the efficiency of their cybersecurity systems could not be substantiated.
For that reason, business operations have to be terminated by Cash2coin and SEADEX by Jan. 14 and were informed to payback clients’ assets that are under their custody, according to SEC. However, following that the approval criteria are basically met, the firms can still reapply for the license.
In the meantime, another application from a firm dubbed ‘Coin Asset’ is still being considered by the SEC. Some executive changes have been made by the company which the SEC sees as a “material information” for consideration of a license. Coin Asset is allowed to conduct business transactions until the time a decision will be made.
The crypto licensing rules of Thailand was first announced in July of last year, with about 20 crypto companies submitting a license proposal within a month. According to the rules, the projects that aim to provide crypto services are required to secure approval from the SEC prior to venturing into operations.