Thailand SEC Sues OKX for Unregistered Crypto Trading Since 2021

The Thailand Securities and Exchange Commission (SEC) has initiated legal proceedings against OKX, a prominent cryptocurrency exchange, alleging that the platform has been offering unregistered crypto trading services since 2021. The SEC's lawsuit claims that OKX has violated the Emergency Decree on Digital Asset Businesses (2018), which mandates that all digital asset businesses must be properly licensed to operate within the country. The regulatory body has also filed a criminal complaint against Aux Cayes FinTech Co. Ltd, the operator of OKX, and nine individuals associated with the firm. These individuals are accused of promoting OKX's services through various online channels, including social media platforms such as Telegram, X, and Line OpenChat, without adhering to the necessary licensing requirements.

The nine individuals charged by the SEC include Sarun Boonmesrisanga, Nut Joongwong, Kritsana Kritsananuwat, Smithi Charoenmin, Kittithat Benchacharoenpat, Saurawit Sanguanphokai, Akarawath Rujiruangchai, Rachata Chuesaibua, and Varut Vanichayakosol. The SEC alleges that these individuals have significantly contributed to OKX's user base and market presence through their promotional activities, thereby facilitating the exchange's operations without proper licensing. The SEC has stated that these actions constitute assistance or facilitation in operating a digital asset exchange without the required legal authorization.

The legal action against OKX highlights the increasing regulatory scrutiny faced by global crypto exchanges. The SEC's lawsuit underscores the importance of compliance with local regulations and the potential consequences of non-compliance. If found guilty, OKX and the involved individuals could face severe penalties under Thai law, which could impact the exchange's future operations in the country. The SEC has also cautioned the public about the risks associated with unlicensed digital asset operators, emphasizing that these platforms lack investor protection and may be vulnerable to fraud and other potential threats.

The case has been forwarded to the Economic Crime Suppression Division (ECD) for further investigation. The ECD will examine OKX's alleged involvement in illegal trading activities and determine the appropriate legal actions to be taken. This development comes at a time when regulatory bodies worldwide are tightening their oversight of the cryptocurrency industry, aiming to ensure that all digital asset businesses operate within the bounds of the law and provide adequate protection to investors. The outcome of this legal action will set a precedent for other crypto exchanges operating in Thailand and serve as a reminder of the importance of regulatory compliance in the rapidly evolving digital asset landscape.

Despite the regulatory challenges in Thailand, OKX continues to expand its operations in other regions. The exchange has received its Markets in Financial Instruments Directive II (MiFID II) license, allowing it to operate derivative products within the European Economic Area. OKX is also in the process of acquiring the last required approval from the Malta Financial Services Authority (MFSA) to establish a presence throughout Europe. This strategic move demonstrates OKX's commitment to entering regulated markets and complying with local regulations, even as it faces legal action in Thailand.