The State Bank of Thailand (SBT) recently announced that bitcoin and other cryptocurrencies will be regulated in the country, and that cryptocurrency exchanges will be required to register with the central bank starting next month. Even more surprising, is that users will be required to present their government-issued ID at cryptocurrency exchanges in order to open accounts. According to the SBT, this new regulation is a direct result of the lack of effective anti-money laundering (AML) and know-your-customer (KYC) regulations in the Thai cryptocurrency market.
The Thai government has reportedly introduced new requirements for cryptocurrencies. Cryptocurrency exchanges will need to verify the identity of users with a machine that requires the physical presence of customers.
New regulations for cryptocurrencies in Thailand
The Anti-Money Laundering Authority of Thailand (Amlo) has announced that from July, local digital exchanges will have to verify the identity of their customers with a chip machine, requiring customers to be physically present, the Bangkok Post reports.
Nowadays, opening an account on cryptocurrency exchanges is done entirely online. In order to approve a new account, exchanges must ensure that the documents submitted by customers comply with the Know Your Customer (KYC) process and eligibility verification rules set by the Securities and Exchange Commission (SEC) of Thailand.
In addition, the documents must be certified by the competent authorities of the State. The application will be rejected if the customer has submitted false documents or lives in a country where trading in cryptocurrencies is prohibited.
Poramin Insom, co-founder and director of cryptocurrency exchange platform Satang Corp. said:
Under the money laundering law, digital asset exchanges must report any transaction worth more than 1.8 million baht ($58,000) and create a database to be monitored by regulators.
The Anti-Money Laundering Act came into force in 1999 and requires organizations and companies in the financial sector, such as. B. Investment advisers and real estate agents shall report all transactions that meet the requirements. They must also keep documentation and transaction records as evidence for 5 to 10 years.
In addition, some 6,000 gold shops across the country will require identification from their customers if they wish to buy or sell gold worth more than 100,000 baht in cash.
However, Thanarat Pasawongse, CEO of Hua Seng Heng, said most large gold shops have been using chip machines to verify customers’ identities for four or five years because it is convenient.
As a general rule, customers must show their ID card for cash transactions over 100,000 baht. For transactions over 2 million, a report must be filed with Amlo and traders must report all suspicious transactions to the authority.
What do you think about the new identity verification requirement to open a crypto currency account in Thailand? Let us know your comments in the section below.
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Frequently Asked Questions
How can Cryptocurrency be regulated?
Bitcoin was the first cryptocurrency and is still the most popular one by market cap. However, the surge in popularity over recent years has raised concerns that this unregulated market could be susceptible to fraud and scams. So many people are starting to question whether or not the cryptocurrency market needs regulation. Blog Post Body: Over the past few years, cryptocurrency has become a popular investment option amongst individual and institutional investors interested in a new and potentially profitable asset class. However, a surge in popularity over recent years has raised concerns that this unregulated market could be susceptible to fraud and scams. This has led to calls for cryptocurrency to be regulated. So many people are starting to question whether or not the cryptocurrency market needs regulation. In this post, we will discuss the Cryptocurrency regulation is a complex matter that many politicians are still trying to figure out. Some politicians, like the Dutch finance minister, have gone on record to say that they will not ban cryptocurrency. Others, like India’s finance minister, have called for a complete ban on cryptocurrency, while others are somewhere in the middle. The question is, where do you stand? Do you think that cryptocurrency should be banned, regulated, or left alone?
Does Cryptocurrency need regulation?
The best way to understand the problem is to consider exactly what a cryptocurrency is. The peer-to-peer network, which is needed to maintain the blockchain, is always online and requires a large amount of computing power to run. Therefore, a cryptocurrency has two main components: a cryptocurrency (e.g. Bitcoin, Ethereum) and the cryptocurrency network (e.g. Litecoin, Etherum). The decentralized nature of the network means that many people can contribute their computing power to maintain the network, and everyone who does this is rewarded in the form of cryptocurrency. This is what makes cryptocurrencies so useful: you can pay for them with other forms of currency and you can also earn them! The European Union is considering implementing some form of regulation for cryptocurrency. The decision could impact the way cryptocurrency is traded within the region, but it’s not clear at this point exactly how the regulations would be applied. The European Commission — the executive body of the European Union — wants to ensure cryptocurrencies are not used for illicit activities. This is part of the EU’s effort to combat terrorist financing and money laundering. Nevertheless, cryptocurrency is not the only aspect of finance that the European Union wants to regulate. The organization is also trying to improve the regulation of: Credit institutions, ~~
What countries regulate Cryptocurrency?
It is no surprise that the rapid rise of cryptocurrency has led governments to take notice. As with any new technology, there has been a lot of uncertainty surrounding the potential use cases for blockchain within our everyday lives, and the majority of governments are still trying to decide how to proceed. After all, the cryptocurrency market was worth $270 billion in January alone, and its estimated that it will be over $1 trillion by the end of 2018. If you’ve been following cryptocurrency news over the last few months, you’ve probably noticed that governments have been cracking down on some of the biggest Bitcoin exchanges and providers. China has banned cryptocurrency exchanges and ICOs, and now the Netherlands is following suit. The Netherlands Authority for the Financial Markets (AFM) is the government agency that regulates financial markets in the Netherlands. The AFM recently announced that it will begin regulating cryptocurrency exchanges and (possibly) ICOs.
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