The Thai SEC’s complaint, filed with the Economic Crime Suppression Division (ECD), alleges that OKX, operated by Aux Cayes Fintech Co. Ltd., has been running an unlicensed digital asset exchange since October 15, 2021. Under Thailand’s Emergency Decree on Digital Asset Businesses B.E. 2561 (2018), all digital asset exchanges must be registered and licensed with the SEC. OKX’s failure to comply with this requirement, despite actively promoting its services and charging a 0.1% transaction fee, makes it liable under Section 26 of the Decree, with potential penalties outlined in Section 66.
Additionally, the nine individuals involved are accused of facilitating and promoting unlicensed operations via online platforms such as Facebook, YouTube, Telegram, and Discord. By engaging in these activities, they allegedly played a crucial role in expanding OKX’s reach and user base in Thailand, making them liable under Thailand’s digital asset regulations and criminal code.
The Thai SEC’s actions reflect a broader strategy to tighten control over unlicensed exchanges and protect investors from potential risks such as fraud, misuse of funds, and lack of legal recourse. The regulator has consistently warned the public against engaging with unlicensed platforms, emphasizing that such exchanges operate outside the legal framework and offer no investor protections.
This case is part of Thailand’s broader crackdown on digital asset businesses operating without authorization. In 2024, the government announced a plan to block access to unlicensed exchanges in cooperation with the Ministry of Digital Economy and Society. OKX’s situation is reminiscent of previous regulatory actions against Bybit and other exchanges that attempted to operate outside legal boundaries.
If convicted, OKX and the individuals involved could face severe penalties, including two to five years in prison and fines ranging from 200,000 baht (US$5,894) to 500,000 baht (US$14,737), plus a daily fine of 10,000 baht (US$295) until compliance is achieved.
Beyond the legal ramifications, this case could significantly impact OKX’s reputation and operations. Already, the exchange has faced regulatory scrutiny in other jurisdictions, most notably settling a US$504 million fine with the US government for unlicensed money transmission activities. If Thailand proceeds with strict enforcement, OKX could face operational restrictions in the country, further limiting its global expansion.
Thailand’s aggressive enforcement highlights the ongoing struggle between crypto innovation and regulatory oversight. Governments worldwide are taking varied approaches, some fostering innovation through progressive regulations, while others impose stricter controls to mitigate financial risks. The outcome of this case could set a precedent for other Southeast Asian nations considering tighter regulatory frameworks for digital asset exchanges.
For crypto exchanges and investors, the key takeaway is clear: regulatory compliance is no longer optional. Exchanges must proactively secure licenses and regulatory approvals in jurisdictions where they operate, or risk facing legal consequences, reputational damage, and potential operational shutdowns.
The Thai SEC’s case against OKX underscores the growing importance of regulatory compliance in the digital asset industry. While Thailand’s regulatory approach may seem stringent, it aligns with global efforts to create a secure and transparent financial ecosystem.
As the case unfolds, stakeholders, from investors to crypto businesses, will be closely watching for signals on how Thailand and other nations will navigate the evolving landscape of crypto regulation. Whether this marks the beginning of an industry-wide crackdown or a necessary course correction remains to be seen. However, one thing is certain: crypto businesses can no longer afford to ignore regulatory requirements if they want to maintain long-term stability and credibility in the market.