The Thai government has reportedly imposed a new cryptocurrency requirement. Crypto exchanges are required to verify the identity of users using a computer on which customers must be physically present.
Thailand’s new crypto rules
The Thai Anti-Money Laundering Office (Amlo) has announced that from July “the local digital exchanges will have to verify the identity of their customers through a dip-chip machine, where customers must be physically present” Bangkok Post reported.
Currently, accounts are opened entirely online on crypto exchanges. In order to approve a new account, the exchange must ensure that the documents submitted by customers comply with the regulations of the Thai Securities and Exchange Commission (SEC) for the KYC process (know-your-customer) and the proficiency test.
In addition, the documents must also be checked by the relevant government authorities. The application will be rejected if the customer has submitted forged documents or lives in a country where trading in cryptocurrencies is prohibited.
Poramin Insom, co-founder and director of the crypto trading platform Satang Corp. stated:
The exchange of digital assets is required to report transactions worth over 1.8 million baht [$58,000] according to the Money Laundering Act and must set up a database for inspections by the supervisory authorities.
The Anti-Money Laundering Act came into effect in 1999 and requires companies operating financial firms and legal professionals such as investment advisors and real estate agents to report any transactions that meet their requirements. You must also keep documentation and transaction data as evidence for 5-10 years.
In addition, customers are required to show their ID cards in approximately 6,000 gold stores across the country when buying or selling gold worth over 100,000 baht in cash.
However, Hua Seng Heng General Manager Thanarat Pasawongse stated that most of the major gold stores have been using dip-chip machines to verify customers’ identities for four to five years as it is convenient.
Generally, customers are required to show their ID cards for cash transactions over 100,000 baht. Transactions worth more than 2 million must be reported to Amlo and business owners must report any “suspicious” transactions to the agency.
What do you think of the new ID verification requirement for opening a crypto account in Thailand? Let us know in the comments below.
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