Thailand's SEC Files Criminal Complaint Against OKX For Unlicensed Operations

Thailand’s Securities and Exchange Commission (SEC) has taken a significant step in regulating the cryptocurrency market by filing a criminal complaint against the global cryptocurrency exchange OKX. The complaint alleges that OKX, operated by Aux Cayes Fintech Co. Ltd., has been offering digital asset exchange services to Thai users without the necessary license since October 15, 2021. This move underscores the SEC's commitment to enforcing regulatory compliance within the digital asset sector.

The SEC's complaint highlights several key issues with OKX's operations in Thailand. The platform has been collecting transaction fees and promoting its services without obtaining the required regulatory approval. These actions are considered criminal offenses under Thai law. The Economic Crime Suppression Division will investigate the case, and alongside the exchange, nine individuals have been accused of promoting OKX’s unlicensed platform on social media. This indicates a broader effort to hold both the platform and its promoters accountable for non-compliance.

One of the most concerning aspects of OKX's operations, as noted by the SEC, is the failure to implement adequate know-your-customer (KYC) and anti-money laundering (AML) procedures. This lapse could have exposed Thai investors to significant financial risks and undermined the regulatory oversight intended to protect them. The potential consequences for OKX and the individuals involved are severe, including imprisonment for two to five years, fines ranging from 200,000 to 500,000 baht, and a daily fine of 10,000 baht until compliance is achieved.

This enforcement action is part of a broader effort by Thailand’s SEC to tighten control over digital asset platforms. In previous years, the regulator has taken similar actions against other major exchanges, including Binance and Bybit. OKX has also faced scrutiny globally, having reached a $504 million settlement with U.S. authorities for unlicensed operations. The exchange has taken steps to address regulatory concerns, including enlisting former New York Governor Andrew Cuomo as a legal advisor and appointing Linda Lacewell, the former Superintendent of the New York Department of Financial Services, as its new Chief Legal Officer. These appointments are aimed at strengthening the company’s global regulatory and compliance strategy.

OKX's recent suspension of its decentralized finance (DeFi) services adds another layer to the regulatory challenges it faces. The suspension was cited as a response to intensified media scrutiny and a coordinated attack allegedly involving the North Korean Lazarus Group. This move comes amid increasing competitive pressure and regulatory attention, particularly from the European Union, where regulators are investigating the platform over claims of laundering funds from the February 2025 Bybit hack. The probe threatens OKX’s MiCA license, which is essential for operating in Europe under the new crypto regulatory framework.

In summary, the SEC's criminal complaint against OKX highlights the regulatory challenges faced by cryptocurrency exchanges operating in Thailand. The enforcement action underscores the importance of compliance with local regulations and the potential consequences of non-compliance. As the digital asset sector continues to evolve, exchanges like OKX will need to navigate a complex regulatory landscape to ensure their operations are in line with legal requirements. The broader implications of this case for the cryptocurrency industry in Thailand and beyond remain to be seen, but it serves as a reminder of the need for robust regulatory frameworks to protect investors and maintain market integrity.