When it comes to regulatory adherence, almost every country in the world has the same thing to say. The majority of the countries have continued stressing the fact that the cryptocurrency sector must always adhere to the KYC regulatory policy.
Several countries from around the world have implemented and collected information from cryptocurrency firms in their own way. However, Thailand has taken the know-your-customer (KYC) regulatory adherence to an entirely new level.
The sources have revealed that the financial regulators in Thailand are now planning to tighten their grip around the regulatory infrastructure currently adhered to by the crypto-firms.
The new regulatory amendment would see the account creation process being revised at the cryptocurrency exchanges.
The announcement around the amendment of the signing up process at cryptocurrency exchanges was made on Monday, May 3. The Anti-Money Laundering Office in Thailand announced the implementation of the new regulatory requirement. The regulator has announced that the new implementation will be in place started July of 2021.
Once the new regulation is in place, the cryptocurrency exchanges will have to have the users visit the exchanges for identity verification. They will have to see the exchange representatives in person, who would use the dip-chip machine in order to verify the users’ identities.
At present, the identification verification process in Thailand for cryptocurrency exchanges is similar to the rest of the world. In the current model, the users are required to update the documentation to verify their identity. The majority of cryptocurrency exchanges even demand new users to take a live picture and upload it.
However, with the new amendment in place, the new users will have to visit the exchanges and verify their identities in person. The dip-chip machines are chip readers that are available in the National ID cards of Thai citizens.
Therefore, if a person wishes to become part of the cryptocurrency industry in Thailand, they will be required to go through this process. Now, it is a must for Thai citizens to be physically present at the exchanges at the time of signup for live screening.
With the new policy, the Thai regulator has ensured no citizen without an ID card can sign up at the exchange. Additionally, foreigners currently living in Thailand who are unable to receive the ID card would also be unable to open their accounts at the crypto exchanges.
The Anti-Money Laundering Office has implemented a similar kind of regulation over the usage of gold in the country. According to the new regulation, the gold merchants in the country would have to go through the same dip-chip verification process. However, the identity verification would be required at sales of gold worth 100,000 Thai baht or more in a single go.