Thailand’s securities regulator grants license to Asia-pacific crypto-fiat trading platform Zipmex.
On Jan. 20 a press release was shared by the Thai Securities and Exchange Commission (SEC) that approved the license for Zipmex while placing a strict regulatory requirement on applicants.
In order to secure the license, one needs to have at least 50 million baht ($1.65 million) while having a high standard in their IT and cybersecurity systems. Under Thai law, licensed digital assets operators that are granted a license are classified as financial institutions and must comply with Anti Money Laundering reporting obligations.
License Introduced As A Part Of Regulatory Measures
According to the press release roughly 30 crypto exchanges have applied for licenses with the SEC, out of which two have already been rejected regarding insufficiencies in the KYC measures. The license was introduced as part of the country’s regulatory framework for digital assets, which led to the launch of its first legal initial coin offering in October 2019.
Zipmex counts the former chairman of Stock Exchange Thailand, Dr. Sahit Limpongpan, and Professor Dr. Chaiya Yimwilai, Vice Minister to the Thai Deputy Prime Minister, as members of its advisory board.
In a statement for the release, Dr. Limpongpan said:
“Digital currencies and securities are emerging asset classes for both the banked and unbanked. It is an interesting time in our financial history, and I’m glad Thai regulators are working with exchanges to build regulatory frameworks for these new technologies to operate within.”