Thailand’s Ministry of Finance and the Thai Securities and Exchange Commission (SEC) granted a digital assets exchange license to Zipmex. It is a crypto-fiat trading platform.
Based on the press release, authorities granted the license. Zipmex had to meet the requirements. For example, a company should prove that they have robust finances, with shareholder equity of at least 50 million baht ($1.65 million). Moreover, a company should operate at a high standard when it comes to IT and cybersecurity systems.
It is important to note that under Thai law, licensed digital assets providers that receive a license are classified as financial institutions. Thus, operators must comply with Anti Money Laundering reporting obligations.
Crypto exchanges and regulations in Thailand
The press release also contained much interesting information about the crypto exchanges in Thailand. According to the press release, 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.
The license was created as part of Thailand’s regulatory framework for digital assets.
Many famous people work for this platform. For example, former chairman of Stock Exchange Thailand Dr. Sahit Limpongpan. Another person associated with Zipmex is the Vice Minister to the Thai Deputy Prime Minister.
Thanks to this license, 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.
Zipmex already launched country-specific platforms in Australia, Indonesia, and Singapore.
Authorities in Thailand adopted a pragmatic approach regarding the crypto industry in 2019. Last year, in January 2019, regulator granted licenses to four cryptocurrency companies.