Thailand’s financial watchdog “will block access” to
five unlicensed cryptocurrency exchanges, including Bybit and OKX, in the
latest effort to curb illicit financial activity and protect domestic
investors. The order, which takes effect on June 28, is
reportedly in line with updated legal powers granted under new cybercrime
legislation.
The Office of the Securities and Exchange Commission of
Thailand (SEC) reportedly investigated and identified Bybit, 1000X, CoinEx, OKX, and
XT.COM as operating digital asset services without proper licenses.
Regulator Flags Unauthorized Activity
The agency filed formal complaints against the
platforms, citing breaches of its regulations. The SEC has reportedly submitted
their details to the Ministry of Digital Economy and Society, which holds the
power to block access under a recently enacted cybercrime law.
The SEC described the upcoming block as a preventive
measure to stop the platforms from being misused for scams or money laundering
activities.
Read more: SEC Dropped the Lawsuit Against Binance After 2 Years
“In order to protect investors and prevent the use of
unauthorized digital asset trading platforms as a means of money laundering by
fraudsters, in line with the intention of the Royal Decree on Measures to
Prevent and Suppress Technology-Related Crimes, the SEC has submitted the above
platform information to the Ministry of Digital Affairs,” the regulator said.
The agency emphasized that assets held on unlicensed
platforms are not protected under Thai law, leaving investors exposed to
potential fraud and legal risk. It also directed the public to use the official SEC
channels to verify licensed operators and report suspicious activities.
New Rules Bolster Regulatory Reach
The crackdown is based on powers granted by the Royal
Decree on Measures for the Prevention and Suppression of Technology Crimes,
which came into effect on April 13.
The legislation enables government agencies to block
digital infrastructure associated with technology-related offenses, including
unregistered cryptocurrency services.
Earlier this year, Thailand’s Cabinet approved broader
amendments to the country’s digital asset rules, reflecting a growing intent to
address regulatory gaps surrounding foreign and peer-to-peer crypto providers.
Early this year, the SEC announced that it was
considering allowing the listing of local Bitcoin exchange-traded funds.
The announcement came from the regulator’s Secretary-General, who mentioned
that the instrument would enable individuals and institutions to invest
directly in cryptocurrency.
This article was written by Jared Kirui at www.financemagnates.com.
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