The Thailand government is planning to implement more rigid regulations around crypto exchanges as it mandated the authentication of identities of the crypto investors using a dip-chip machine, which will require the physical presence of the clients. These machines are utilized for ID verifications across gold shops present in the country.
Thailand Mandates Physical Identity Verification of Crypto Investors
In accordance with a report shared by the Bangkok Post on Monday, it was revealed that the new rules around the anti-money laundering practices of the crypto exchanges will be coming into effect in the month of July. However, it should be noted that there are chances that the newly implemented rules might slow down the onboarding process on Thai crypto exchanges from the second half of this year.
The Co-Founder and Director of Satang Corp, Poramin Insom said:
“Most digital asset exchanges are still busy preparing their systems to accommodate the growing number of clients as new account applications continue to flow in.”
In addition to this, the statement said:
“However, this growth may be curbed if the application process becomes more complicated.”
AML Rules Will Become a Hurdle for the Entire Onboarding Process
The crypto exchanges based in Thailand are witnessing huge demand for cryptocurrencies, which is in line with the international trend, as the prices of cryptocurrencies are touching the sky.
As a matter of fact, the country has over 697K accounts in the crypto industry as recorded on April 26 from which around 160K accounts were added in the year 2021 alone.
The implementation of the new AML rules will be acting as a hurdle in the process of onboarding as the crypto exchanges rely heavily on automation.
Moreover, the intermediaries in the country are now planning to discuss the issue at a forum and prepare a questionnaire with the government agencies.
Meanwhile, the country is fighting over the circulation of stablecoins, which violates the currency act of the country accordion to the Thai central bank.