- The Anti-Money Laundering Office of Thailand announced that new crypto users will have to verify their identity through a “dip-chip” machine.
- The customers will have to be physically present to use “dip-chip” machines for the verification process.
- Crypto exchanges in Thailand have witnessed a whopping 437% rise in new clients in 2021.
The Anti-Money Laundering Office (AMLO) of Thailand has reportedly announced that local cryptocurrency exchanges in the country will have to verify their new customers’ IDs through a “dip-chip” machine, demanding clients to be physically present during the ID check process.
According to the report, this in-person verification requirement will come into effect starting July. The new rule is also likely to prevent foreign entities from accessing local Thailand crypto exchanges since they don’t possess Thai ID cards.
Explosive Growth in Thai Crypto Adoption
In the latest days of 2020, the total number of cryptocurrency accounts in local exchanges in Thailand was roughly 160,000. However, as of late April, this number had surged to about 700,000, a whopping 437% rise in just four months. But with this requirement added to the application process, naturally, the rate of opening new accounts will considerably slow down.
Poramin Insom, director and co-founder of Satang Corp, Thailand’s most trusted crypto exchange, said “Most digital asset exchanges are still busy preparing their systems to accommodate the growing number of clients as new account applications continue to flow in. However, this growth may be curbed if the application process becomes more complicated.”
As of now, the cryptocurrency account application process is entirely electronic, with clients submitting their documents online and exchanges, too, approving accounts online. However, exchanges must go the extra mile and review all submitted documents to make sure they are not fake and that they comply with SEC regulations.
Crypto exchanges are responsible to report any transaction worth over 1.8 million THB (equivalent to $57,700), Mr. Poramin stated. He also added that exchanges are obligated to have a database set up so that regulators can inspect their activities.
The Thailand Digital Asset Operators Trade Association will host a forum to enable the exchanges’ intermediaries to discuss and gather questions for further dialogue with regulatory agencies such as the Securities and Exchange Commission and AMLO.
Similar Processes Already Exist for Gold
The tightened regulations are not only for the crypto markets. According to the report, the Anti-Money Laundering Office requires gold shops across the country to apply the same regulation — using a “dip-chip” machine for identity verification — for selling gold worth over 100,000 THB ($3,200) in cash. Also, customers are obligated to show their ID cards for cash transactions worth over 100,000 THB ($3,200). And, for transactions worth over 2 million THB (roughly $64,000), customers need to file a report with the Anti-Money Laundering Office.
