The Securities and Exchange Commission (SEC) of Thailand has filed a lawsuit against nine people and Aux Cayes FinTech, the company that runs the cryptocurrency exchange OKX, for allegedly providing unauthorized cryptocurrency trading services in Thailand.
The action is against the nation’s 2018 Digital Asset Business Decree, which requires that organizations providing digital asset services acquire the appropriate license.
What Does The Lawsuit Entail?
According to the SEC’s lawsuit, OKX has been enabling customers to trade a variety of cryptocurrencies through its website and social media accounts in Thailand since 2021.
According to reports, the exchange assessed a 0.1% transaction fee to users. Concerns regarding market transparency and regulatory compliance have been raised by OKX and the persons involved in operating without the required license.
This move demonstrates Thailand’s dedication to upholding its laws governing digital assets and shielding investors from the possible dangers posed by unregistered cryptocurrency exchanges.
Also Read: Thailand’s SEC Recognizes Tether’s USD₮ as Approved Crypto Amid Global Struggles with Regulations
Thailand SEC Also Accuses 9 People Of Helping OKX
Apart from OKX’s parent company, Thailand’s SEC has also filed cases against 9 people in the matter.
Through a variety of online channels, including Facebook, YouTube, Discord, Telegram, and Line OpenChat, the nine people implicated in the SEC’s lawsuit are said to have assisted and promoted OKX’s illegal cryptocurrency trading activities.
These people are credited with helping the exchange reach a wider audience and draw users to its platform.
They are accused of violating the Emergency Decree and the Criminal Code, which forbid aiding in the operation of digital asset services without the required licensing, by endorsing and promoting illegal businesses.
Thailand Takes Strict Measures to Combat Crypto Frauds
Thailand has increased its efforts to stop illicit cryptocurrency activity, concentrating on unlicensed companies, fraud, and scams in the sector.
Enforcing stringent licensing rules for operators of digital assets, the Thai Securities and Exchange Commission (SEC) has been at the forefront of crypto regulation.
These rules were established by the 2018 Digital Asset Business Decree, which forbade platforms from providing cryptocurrency trading services without the required license.
In this vein, to combat illicit cryptocurrency activity, the SEC has filed criminal complaints against OKX operator Aux Cayes FinTech and nine others who promoted unlicensed cryptocurrency trading services.
Along with raising investor awareness of the dangers of unregulated cryptocurrency platforms, the SEC has also taken action against fraudulent initial coin offerings (ICOs) and Ponzi schemes.
By putting these policies into place, Thailand hopes to make the crypto market safer and guarantee that it complies with legal requirements.
Also Read: Thailand To Launch Cryptocurrency Sandbox In Phuket Amid Intense Digital Currency Adoption, Reports