Thailand’s financial watchdogs are preparing to introduce new policies that require a crypto exchange to personally verify the identity of new users. The State’s Anti-Money Laundering Office (AMLO) will commission the exchange from July 2021 with the use of a dip-chip machine for identity verification. Dip-chip machines are reportedly scanning a chip built into Thai citizenship IDs.
Currently, new users can verify their identity in crypto exchanges by submitting their documents online. When the new policy goes into effect, users who want to open an account will need to be physically present so that their IDs can be scanned for verification. Allegedly, these changes could prevent foreign investors from accessing crypto exchanges in the country as they do not have Thai IDs.
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However, digital asset intermediaries would like to raise the issue at an upcoming forum organized by the Thailand Digital Asset Operators Trade Association. During this event, attendees will gather questions to submit to relevant government agencies such as the Securities Exchange Commission (SEC) and AMLO.
The new identity verification system could damage Thai crypto space
Thailand reportedly had 697,780 crypto exchanges as of April 26, a steep increase from 160,000 at the end of 2020. While the dip chip requirement is to ensure that crypto exchanges receive accurate KYC information from new users as cryptocurrencies remain in the country Gaining popularity Industry experts fear this change will affect the country’s crypto sector.
For example, Poramin Insom, co-founder and director of the Thai crypto exchange Satang Corp. said that most of the digital asset exchanges in the country are still busy preparing their systems for the influx of customers as new account applications continue to come in. that a more complicated application process can stunt the growth of the crypto space.
The process of verifying new digital accounts in Thailand is still taking a long time despite its full electronic usage. This is because exchanges need to review the submitted documents to make sure they comply with the SEC’s KYC rules. As a result, this process takes longer if each new user has to physically visit an exchange to have their ID scanned for verification purposes.