Thailand requires KYC checks on crypto exchanges to be done “in person”

Thailand requires KYC checks on crypto exchanges to be done “in person”

Thailand’s Anti-Money Laundering Office (Amlo) recently announced that “local digital exchanges must verify their customers’ identities through a ‘dip-chip’ machine. Starting September, this will require new clients to be physically present.”

This will be in sharp contrast with the current process of opening a new account. Verification of accounts is now taking place online with all documents submitted by customers to comply with the regulations set by the Thai Securities and Exchange Commission (SEC) for the know-your-customer (KYC) process and suitability test.

At the end of April, there were 697,780 cryptocurrency accounts nationwide, a surge from 160,000 at the end 2020.

Poramin Insom, co-founder and director of crypto trading platform Satang Corp., commented on the change with slight scepticism:

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

Nonetheless, the Satang Corp director underlines the importance of having the right checks in place and acknowledges that exchanges have a duty to comply with Anti Money Laundering legislation by reporting any transaction worth over 1.8 million baht ($58,000).

Gold

Not only the crypto space is subject to a change in regulations. About 6,000 gold shops nationwide will also be requiring its customers to identify themselves when buying or selling gold worth over 100,000 baht in cash. For transactions worth over 2 million baht, business operators must report any “suspicious” transactions to the Thailand Amlo.

According to Thanarat Pasawongse, Chief Executive Officer of on of the largest gold trading platform in the country, Hua Seng Heng, the new regulations will not disrupt the operations of gold shops that much. He explained that most large gold shops have already been using dip-chip machines to verify customers’ identities for four to five years. They have been so mainly because it is convenient and beats the process of photocopying.

On the other hand, the CEO did express some concerns when it comes to customer’s privacy and hoped the minimum amount of 100,000 baht would not be reduced:

“I understand the intention of officials, but we have difficulty complying with the current criteria,” he said. “Gold prices have been constantly increasing and just four baht of gold nowadays is worth 100,000 baht. I hope the minimum trigger point will not be reduced.”

The Anti-Money Laundering Act was actioned in 1999 and obligates entities operating financial businesses and legal professionals, such as investment advisers and real estate brokerages, to report any transaction meeting its requirements. In addition, they also need to keep documentation and transaction data as evidence for 5-10 years.

The post Thailand requires KYC checks on crypto exchanges to be done “in person” appeared first on iGaming.

Source: igaming