Crypto-related companies are evolving as they have to adapt to the ever-changing crypto market. One of the biggest challenges is to comply with crypto regulations. It is quite hard as regulations some clarity or they are unnecessarily complicated for the businesses.
However, crypto regulations are important by using rules and regulations; it will be easier to prevent money laundering and other crimes.
Crypto-related companies made a step forward when they deiced to apply for a license to operate in Thailand.
Based on the information, roughly 30 crypto exchanges applied for licenses with the Thai Securities and Exchange Commission.
Two exchanges failed to meet the requirements. As they were unable to deal with issues such as Know Your Customer (KYC) and security measures.
Crypto exchanges and local authorities
Recently, authorities in Thailand granted a license to the company called Zipmex.
Thailand’s Ministry of Finance and the Thai Securities and Exchange Commission (SEC) decided to approve the application. Zipmex is a crypto-fiat trading platform.
The license was created as part of Thailand’s regulatory framework for digital assets.
The crypto exchange will start operating in 2020.
Zipmex formed a partnership with AEC Securities Public Company in Thailand.
This company specializes in securities, brokerage, and investment banking. The AEC Securities Public Company is trying to attract customers from retail and institutional investors in Thailand.
The crypto exchanges must comply with strict requirements. For instance, a company should prove that they have robust finances, with shareholder equity of at least 50 million baht ($1.65 million).
Additionally, a company should operate at a high standard when it comes to IT and cybersecurity systems.
Moreover, according to Thai law, licensed digital assets providers fall in the same category as traditional financial institutions. Consequently, operators must comply with Anti Money Laundering reporting obligations.
Zipmex already launched country-specific platforms in Australia, Indonesia, and Singapore. Thailand is another lucrative market for the platform.