Thai SEC Sues OKX for Unlicensed Crypto Trading Since 2021

The Thai Securities and Exchange Commission (SEC) has initiated legal action against OKX, one of the largest cryptocurrency exchanges, alleging that the platform has been operating without the necessary registration since 2021. According to the SEC, OKX has violated the Emergency Decree on Digital Asset Businesses (2018) by providing crypto trading services without obtaining the required license.

This lawsuit underscores the regulatory challenges and increased scrutiny faced by global crypto exchanges. The SEC's allegations highlight OKX's promotional activities in Thailand through various social media platforms, including Telegram, X, and Line OpenChat, without adhering to the licensing requirements. The legal action includes a criminal complaint against OK operator Aux Cayes FinTech Co. Ltd and nine individuals associated with the firm. The SEC claims that OKX charged a 0.1% trading fee, mimicking the operations of licensed platforms and thereby violating the Emergency Decree on Digital Asset Businesses, which mandates that only regulated firms can operate in the crypto space.

The nine individuals charged by the SEC are accused of facilitating OKX's activities by promoting the exchange through various online channels. These individuals include Sarun Boonmesrisanga, Nut Joongwong, Kritsana Kritsananuwat, Smithi Charoenmin, Kittithat Benchacharoenpat, Saurawit Sanguanphokai, Akarawath Rujiruangchai, Rachata Chuesaibua, and Varut Vanichayakosol. The SEC stated that these promotional activities have significantly contributed to OKX's user base and market presence, constituting assistance or facilitation in operating a digital asset exchange without proper licensing.

The SEC has forwarded the OKX lawsuit to the Economic Crime Suppression Division (ECD) for further investigation. If found guilty, the crypto exchange and the involved individuals could face severe penalties under Thai law, potentially impacting OKX's future operations in Thailand. The regulator has also cautioned the public about the risks associated with unlicensed digital asset operators, highlighting the lack of investor protection and vulnerability to fraud and other potential threats.

This development comes at a time when the regulatory landscape for cryptocurrencies is evolving. While the US SEC has recently dismissed several long-held crypto lawsuits and dropped its appeal against Ripple, the Thai SEC's actions against OKX demonstrate a stricter approach to enforcing regulations in the digital asset space. The outcome of this lawsuit could set a precedent for how other jurisdictions handle unlicensed crypto exchanges, emphasizing the importance of compliance with local regulations to avoid legal repercussions.