Thai SEC tightens measures against unenclipped crypto exchange OKX: Legal dispute could limit access for users

<p> <strong> Thai SEC tightens measures against unenclipped crypto exchange OKX: Legal dispute could limit access for users </strong> </p>

Thai SEC tightens measures against OKX and unregulated crypto exchanges

The Thai securities and stock exchange supervisory authority (SEC) significantly tightened its measures against companies for digital assets that operate outside the legal framework. The latest stock exchange, which has been targeted by the supervisory authority, is okx.

allegations against OKX

The SEC submitted a formal complaint against OKX and accused the company to offer cryptocurrency trading services in Thailand without the required license according to the Digital Asset Business Act BE 2561 (2018). This lawsuit is part of a more comprehensive strategy of SEC to curb unregulated crypto activities in the country. The focus is particularly on companies that circumvent the regulations to combat money laundering (AML) and to identify customers (KYC).

The complaint also emphasizes that OKX was unable to fulfill the regulatory reporting requirements, which significantly impairs the ability of the supervisory authority to monitor commercial activities and to protect investors.

Missing Kyc/AML systems

A central accusation against OKX is that the company offered trade services to Thai users without registration or approval. According to the Digital Asset Business Act, companies that work in Thailand are obliged to acquire licenses in order to be subject to official supervision. According to the SEC, OKX does not meet these requirements.

Another serious accusation concerns the lack of robust KYC and AML protocols. The SEC emphasizes that the lack of such control mechanisms exposes local dealers to an increased risk, including fraud and money laundering. In particular, it is argued that without effective controls, the identity of the users can be difficult to check and suspicious transactions can only be traced to a limited extent.

Extension of the crypto enforcement

The measures against OKX are part of a wider strategy that aims to bring all trading activities under regulatory control. This follows a pattern of enforcement measures by the Thai authorities against cryptocurrency exchanges that operate outside of the legal framework. In July 2021, a similar lawsuit against Binance was submitted, which then received a partnership with Gulf Energy Development to establish a licensed platform.

Finally, by BYBIT was also targeted by the SEC in December 2023 because of the operation of an unauthorized trading platform for digital assets. These steps are part of a targeted campaign to adapt Thailand to global standards for crypto compliance.

In April 2024, the SEC also announced measures to block access to non -registered stock exchanges in cooperation with the committee for contraception and combating technology crime. These measures provide for a maternity leave that enables users to withdraw funds before the restrictions become effective.

Legal risks for OKX

Although only a lawsuit against OKX has been submitted, the upcoming legal proceedings will decide whether the company has violated Thai laws. In the event of a conviction, the platform threatens sensitive punishments and access for Thai users could be blocked. This could possibly lead to OKX either setting up the operation in Thailand or taking subsequent compliance measures.

Up to a judgment, OKX is under official observation, which could significantly impair the position of the platform in the region. The SEC’s complaint also sends a clear message to other international stock exchanges that offer services in Thailand without permission.

FAZIT

The measures of the Thai SEC illustrate the increasing need for companies in the crypto sector to comply with national laws, especially in emerging markets in which the regulatory authorities strengthen the controls. Thailand's approach combines legal measures with investor protection strategies and signals the intention to formalize the industry and at the same time protect stability and trust. The case against OKX is not only an indication of the stricter supervision in the crypto sector, but also for a global trend towards more regulation.