The Securities and Exchanges Commission of Thailand (SEC) revealed the approval by the Ministry of Finance to issue 4 Digital Asset Business licenses, 2 license applications being refused and 1 case under consideration.
8th January, 2019,
There were 7 applications according to the request for a license to operate a digital asset business under the Digital Asset Business Decree B.E. 2561 on January 7, 2019 and the Ministry of Finance has announced the results of the license application as follows:
Four Firms To Obtain License
There are 4 firms that has been granted the license to operate digital asset business which consisting of 3 firms licensed as Digital Asset Exchange, namely Bitcoin Co., Ltd. (BX) bx.in.th, Biktub Online Co., Ltd. (BITKUB) bitkub.com, and Satang Corporation Co., Ltd. (Satang Pro) satang.pro and 1 Digital Asset Broker/Dealer: Coins TH Co., Ltd. Coins.co.th.
There are 2 applications that has been rejected, which are Cash2Coin Co., Ltd. (Cash2coin), cash2coins.com and South East Asia Digital Exchange Limited (SEADEX), seadex.io, which has applied for Digital Assets Exchange license. Due to security concern and KYC standard that are not accepted by the SEC and cannot prove that IT security and cybersecurity are highly secured.
As Cash2coin and SEADEX have been operating Digital Asset Business under temporary provision, this concluded as termination of the 2 operating Digital Asset Businesses. However, to allow time to complete the transitional procedures which include informing customers to withdraw their digital assets back or transfer to other preferred digital asset business operators. Therefore, the Ministry of Finance allowed these 2 companies to continue operating business activity until 14th January 2019.
If the company still hold digital assets that are deposited by its customers, the company have to cooperate in transferring or returning assets to users or according to users’ request. Two companies are required to inform the results of the process to the SEC. The SEC has issued an informing letter to both companies about the result of this consideration. However, this is not eliminating the right to re-apply for the license in the future.
For Coin Asset (coinasset.co.th) which applied for Digital Asset Exchange license have some changes at the executive level which is significant for the consideration. As a result, the Ministry of Finance is still considering the information that has changed. Therefore causing the consideration of the company’s request to be postponed. In the meantime, the company is allowed continue to operate under the temporary provisions.
Note: All 7 operators were operating Digital Asset Business under the temporary provisions of the Digital Asset Business Act B.E. 2561.