Thai SEC Files Criminal Complaint Against OKX for Unlicensed Crypto Operations
1min read The Thai Securities and Exchange Commission (SEC) has initiated legal proceedings against OKX, a prominent cryptocurrency exchange, for allegedly conducting operations without the necessary license. The regulator has filed a criminal complaint against Aux Cayes FinTech Co. Ltd., the entity behind OKX, along with nine individuals associated with the platform. According to the SEC, OKX has been offering cryptocurrency trading services in Thailand since 2021 without obtaining the required approval.
The SEC alleges that OKX actively promoted its services through various social media channels, including Telegram, X, and Line OpenChat. The exchange also imposed a 0.1% trading fee, similar to licensed platforms, which the SEC claims violates Thailand’s Emergency Decree on Digital Asset Businesses. This decree mandates that only regulated firms can operate in the cryptocurrency space, ensuring compliance and security for investors.
The nine individuals implicated in the case are accused of aiding OKX in penetrating the Thai market by promoting the platform to potential investors. The SEC asserts that their actions, including insider trading, are directly linked to the exchange’s unlawful operations. The case has been transferred to the Economic Crime Suppression Division (ECD), which will determine the next steps in the legal process. If found guilty, OKX and the individuals involved could face significant penalties under Thai law.
In response to the legal action, the SEC has issued a warning to investors about the risks associated with using unlicensed cryptocurrency platforms. The regulator emphasizes that without proper regulation, investors are vulnerable to fraud and financial losses. The SEC advises traders to verify a platform’s licensing status before making any investments. This case underscores the growing pressure on cryptocurrency exchanges to adhere to local regulations. As more governments enforce stricter compliance measures, exchanges operating without proper authorization risk facing severe consequences.
Ask Aime: What does the Thai SEC's legal action against OKX mean for the cryptocurrency market?
