The Thai Securities and Exchange Commission has initiated legal action against OKX for operating without the appropriate licensing and for other regulatory infringements.
In its complaint, the Thai SEC has called out the OKX crypto exchange for several breaches of Thailand’s digital asset laws. The commission alleges that OKX has been providing trading services in the country without the required license mandated by the Digital Asset Business Act B.E. 2561 (2018). The SEC also expressed concerns regarding the exchange’s insufficient implementation of Know Your Customer (KYC) and Anti-Money Laundering (AML) measures, which might expose Thai traders to significant risks. Additionally, the SEC noted that OKX has reportedly not adhered to the nation’s reporting standards, hampering the authorities’ ability to keep effective regulatory oversight of the exchange’s activities.
This legal action against OKX reflects the Thai SEC’s efforts to impose stricter regulations on unauthorized crypto exchanges operating within the country. In July 2021, the agency previously lodged a criminal complaint against Binance for lacking the necessary operating license. In response to these regulatory challenges, Binance formed a partnership with Gulf Energy Development to create a licensed exchange in Thailand. Recently, in December 2023, the SEC also took action against Bybit for conducting digital asset trading without appropriate authorization.
After a meeting of the Technology Crime Prevention and Suppression Committee in April 2024, the Thai SEC disclosed its intention to restrict access to unauthorized trading platforms across the nation, allowing users a grace period to withdraw their funds before the imposition of these limitations.
As the SEC’s complaint against OKX is still pending and no wrongdoing has been conclusively established, should the exchange be found at fault, it may face legal repercussions, and Thai users could lose access to the platform.