Thai regulators charge OKX operator and 9 promoters with illegal cryptocurrency activity
SEC complaint could lead to criminal proceedings
The Securities and Exchange Commission (SEC) of Thailand has filed a formal complaint against Aux Cayes FinTech Co. Ltd, the operator of OKX in Thailand, and nine promoters of the popular crypto exchange for operating without a license.
In a complaint submitted to the Economic Crime Suppression Division (ECD), the SEC stated that OKX’s operations in the country violate the Emergency Decree on Digital Asset Business B.E. 2561 (2018). According to Cryptopolitan, the document indicates that OKX began operations in Thailand in October 2021 and collected a 0.1% transaction fee, despite lacking proper authorization.
“OKX’s activity may be considered digital asset exchange business under Section 3 of the Emergency Decree, for which the company has not obtained a license, thereby violating Section 26 and subject to penalties under Section 66,” the Thai SEC stated.
The regulator also noted that OKX had promoted its unlicensed services across social media platforms including Facebook, X (formerly Twitter), Telegram, YouTube, Discord, and OpenChat.
Emergency Decree on Digital Assets Business. Source: Thailand SEC, Cryptopolitan.
The SEC identified nine individuals who helped promote the exchange's services via social media and filed criminal charges against them. It noted that their actions assisted OKX in expanding its user base in Thailand, in violation of the digital asset regulations.
“The actions of these nine individuals increased OKX’s brand recognition and attracted more users. As such, their conduct constitutes aiding and abetting OKX in operating an unlicensed digital asset exchange, which violates Section 26 of the Emergency Decree,” the SEC said.
SEC complaint could lead to criminal proceedings
It is important to note that the complaint represents only the initiation of a criminal investigation and is not proof of guilt. It is now up to prosecutors to determine whether to proceed with the case. The SEC may only oversee the process and collaborate with the relevant agencies involved in the proceedings.
If OKX and its promoters are found guilty, they may face criminal penalties. Under the Digital Asset Decree, anyone operating an unlicensed exchange may be sentenced to 2 to 5 years in prison, fined between 200,000 THB ($5,894) and 500,000 THB ($14,737), plus an additional fine of 10,000 THB ($295) for each day the offense continues.
The SEC also issued a public warning to investors about the risks of using unlicensed digital asset platforms in Thailand, noting that such platforms offer no legal protection and expose users to money laundering and fraud risks.
The regulator added that an official list of licensed digital asset operators is available on its website. Currently, 32 companies have received licenses, including major players such as Binance and Upbit.
As we wrote, OKX has shut down its DEX aggregator after regulators found that $100 million laundered through the platform came from the $1.5 billion Bybit hack. European regulators are investigating whether OKX Web3 violates MiCA regulations, which could lead to fines or even license revocation.
