The Thailand Securities and Exchange Commission (SEC) has filed a criminal complaint against crypto exchange OKX and its partners for operating without a license. The investigation focuses on violations of the Digital Assets Law.
Violation of Digital Assets Law
According to the SEC's complaint, OKX began operations in Thailand in October 2021 without the necessary license, which is contrary to the Emergency Decree on Digital Asset Businesses 2018. The exchange charged transaction fees of 0.1%. The SEC stated that these actions fall under Section 3 of the Decree and violate Section 26, leading to offenses and penalties under Section 66.
OKX Partners Under Investigation
The regulator also noted that OKX was promoting its unlicensed operations on social media platforms such as Facebook, X (formerly Twitter), Telegram, YouTube, Discord, and OpenChat. Nine individuals were identified by the SEC as aiding OKX in promoting its services, with criminal complaints filed against them. Their actions allegedly helped the exchange expand its user base in the country, violating digital asset law.
Thai Regulator's Warning
The Thai SEC has cautioned the public and investors against using unlicensed digital asset exchanges. It highlighted that such platforms pose risks as there is no legal protection for users, who could become victims of money laundering or scams. The list of licensed digital asset businesses is available on the SEC's website. In 2024, the regulator announced plans to block unlicensed platforms.
If guilt is established against OKX and its partners, they could face serious sanctions, including fines and imprisonment under the Digital Assets Decree. The decision to proceed with the case depends on the prosecutors, with the SEC cooperating with other agencies in the investigation.
