Thailand Tightens New Account Registration For Cryptocurrency Trading

Illustrated by bitcoin di Thailand (Bitcoinist)

JAKARTA - The Thai government plans to tighten the process of creating crypto exchange platform accounts. So, not just anyone can register on the cryptocurrency trading exchange. Each platform is required to verify the identity of the new customer using a "dip-chip" machine.

Launching Cointelegraph, new users are required to send important documents such as their identity online. The dip-chip machine will scan the chip embedded in the ID card of Thai citizens. This forces new customers to be physically present for the verification process.

The new regulation from the Thai financial regulator is also claimed to prevent foreign investors who do not have a Thai ID card from accessing crypto exchanges in their country.

This proposal received a positive response from members of the parliament. They also intend to implement a similar rule for gold sales that are more than 100,000 baht (around Rp. 46 million).

A number of gold traders in the city of Bangkok have reportedly used the chip machine to verify the identity of new customers.

In Thailand itself, crypto assets are very popular. Therefore, the government needs to tighten its regulations. Currently there are 700,000 account holders on the Thai crypto exchange, this number has experienced a jump from the previous year, which was only 160,000 accounts in 2020.

However, the emergence of this proposal was regretted by Thai crypto exchange officials. This is because the tightened rules will hamper the development of new users in the crypto asset sector.

This objection was conveyed by the CEO of the Satang Corp crypto exchange, Poranim Insom. He said that the growth of crypto asset users would be hampered if the account registration process was made more complicated.

“Most digital asset exchanges are still busy preparing their systems to accommodate a growing number of clients as new account applications continue to flow. However, this growth can be hampered if the application process becomes more complicated, ”said Poranim.

The digital asset trading association in Thailand plans to hold a dialogue regarding the new rules. They plan to invite the Thailand Securities and Exchange Commission (SEC). Apart from that, the association will also invite the Anti Money Laundering Office (AMLO) in the joint dialogue.

The biggest crypto exchange in Thailand, Bitkub, which has been suspended by the SEC, has also remained silent and declined to comment on the new policy.