Thailand Steps Up Identity Checks for Crypto Users

New Rules on Account Creation

In a bold move to tighten its grip on the booming cryptocurrency scene, Thailand’s Anti-Money Laundering Office has announced fresh regulations that require crypto exchanges to establish more stringent identity verification processes for new accounts. Come July, all new users will need to present themselves in person, and we’re not just talking about a simple handshake; they’ll be waving hello to a ‘dip-chip’ machine that scans Thai citizen ID cards.

The Dip-Chip Machine Explained

So, what’s this dip-chip magic? Essentially, it’s a fancy way of saying that in order to set up an account, you’ll have to be face-to-face with this high-tech gadget, which reads a chip embedded in your shiny Thai ID card. While online document submissions have made remote verification a breeze, the new requirements flip the script entirely. Your couch potato days are numbered!

The Foreign Factor

Unfortunately for adventurous foreign investors, the new rules have a surprising twist. Since they can’t snag a Thai ID card, these newcomers might just find themselves locked out of the flourishing Thai crypto market. Talk about a party crasher!

Gold Sales Regulation on the Horizon

The government isn’t stopping at crypto; they’re eyeing gold sales as well. Any transaction over 100,000 Thai baht (roughly $3,200) may soon require the same ‘dip-chip’ treatment. Some of Bangkok’s gold merchants are already ahead of the curve, adopting this tech to verify identities. It’s like the VIP section of a club, but for shiny yellow metal instead of dance moves.

The Growing Pains of Crypto in Thailand

The move comes hot on the heels of a meteoric rise in interest in cryptocurrency, with accounts at Thai crypto exchanges skyrocketing from a mere 160,000 at the tail end of 2020 to nearly 700,000 in the first week of May 2023. With such growth, it’s no wonder that industry leaders are feeling anxious. Poramin Insom, co-founder and director of Satang Corp, expressed genuine concern, noting:

“This growth may be curbed if the application process becomes more complicated.”

The Thailand Digital Asset Operators Trade Association is slated to spark conversations around these regulations in an upcoming forum with regulatory bodies. Eager to engage in a dialogue are various stakeholders in the crypto space—because when it comes to regulations, it’s better to be in the room than stuck outside in the rain.

What’s Next for Thailand’s Crypto Giants?

Big names like Bitkub, the largest crypto exchange in Thailand, have chosen to stay mum on this new Know Your Customer directive, as the rules aren’t officially in effect just yet. But fear not, they’re watching this drama unfold like avid fans of a binge-worthy Netflix series. Meanwhile, the central bank has been busy raising eyebrows by banning a stablecoin tethered to the Thai baht just a month ago. The plot thickens!