Thailand SEC Alleges Unlicensed Trading Violations

The Thai Securities and Exchange Commission (SEC) has recently filed a lawsuit against OKX, one of the biggest crypto exchanges. The OKX lawsuit alleges that the platform has been functioning without proper registration since 2021. According to the Thailand SEC, OKX has violated the Emergency Decree on Digital Asset Businesses (2018) by offering crypto trading services without proper licensing.

Significantly, the OKX lawsuit highlights global crypto exchanges’ vulnerability to regulatory challenges and heightened scrutiny. Let’s delve into OKX’s regulatory struggles under the Thailand SEC and its potential implications.

OKX Lawsuit: Thailand SEC Strengthens Regulations

In a recent development, the Thailand SEC alleged OKX, a top crypto exchange, of offering unregistered crypto trading services. According to the OKX lawsuit, the platform has been actively promoting its services in Thailand via social media, including Telegram, X, and Line OpenChat, without adhering to the licensing rules.

As part of the legal action, the Thai SEC filed a criminal complaint against OK operator Aux Cayes FinTech Co. Ltd, and nine individuals connected to the firm. The agency alleged that OKX provided unregistered cryptocurrency services to Thai clients, charging a 0.1% trading fee, thereby mimicking the operations of licensed platforms. Thus, the exchange has reportedly violated the Emergency Decree on Digital Asset Businesses, a law that ensures only regulated firms operate in the crypto space.

Thai SEC Charges Nine Individuals

Reportedly, the Thailand SEC has charged nine individuals linked to OKX. They are alleged of facilitating OKX’s activities by promoting the exchange through various online channels. These charged individuals include Sarun Boonmesrisanga, Nut Joongwong, Kritsana Kritsananuwat, Smithi Charoenmin, Kittithat Benchacharoenpat, Saurawit Sanguanphokai, Akarawath Rujiruangchai, Rachata Chuesaibua, and Varut Vanichayakosol.

As per the SEC, these individuals’ promotional activities have significantly contributed to OKX’s user base and market presence. The SEC stated, “These actions constitute assistance or facilitation in operating a digital asset exchange without proper licensing.”

In a recent development, the New York Attorney General’s (NYAG) office imposed a $200 million penalty on Galaxy Digital for promoting LUNA tokens.

Is OKX Banned in Thailand?

Currently, the SEC has forwarded the OKX lawsuit to the Economic Crime Suppression Division (ECD). The division will investigate OKX Thailand’s alleged involvement in illegal trading. If found guilty, the crypto exchange and the involved individuals could face severe penalties under Thai law. It could also impact OKX’s future in Thailand.

The regulator cautioned the public about the risks associated with unlicensed digital asset operators. The SEC highlighted that these platforms lack investor protection and may be vulnerable to fraud and other potential threats.

This development comes amid the US SEC’s loosened crypto regulations under President Donald Trump. Recently, the SEC dismissed several long-held crypto lawsuits, including Cumberland, Consensys, and Kraken. The US SEC has also dropped its appeal against Ripple, sparking widespread optimism.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.