Thailand’s Anti-Money Laundering Office (AMLO) intends to tighten requirements for cryptocurrency platforms – from July, users of such platforms will have to undergo KYC procedures.
New users can now verify their identity by submitting documents online. However, if the requirements are tightened, Thai citizens will have to scan a chip embedded in their ID card, which will require customers to be physically present for the verification process.
Residents of Thailand who are not citizens of the country may face problems when registering on cryptocurrency exchanges – they simply will not have a certificate with the necessary chip. The new rules could also discourage foreign investors from gaining access to exchanges in the country.
The Thai regulator noted that the number of users of cryptocurrency exchanges increased from 160,000 at the end of 2020 to 700,000 at the beginning of May 2021. Such growth of clients of cryptocurrency platforms forced regulators to “attend” to their protection.
Cryptocurrency industry workers in Thailand have expressed concern over the new regulations. For example, Poramin Insom, co-founder and director of the Thai exchange Satang Corp, noted:
“Most digital asset exchanges are busy expanding their systems as the number of clients grows. But the new rules may hinder this, because registration will become more difficult. “
