Thai watchdog seeks criminal action against crypto exchange OKX for lack of license

The complaint, which will be handled by the Economic Crime Suppression Division, said that OKX, operated by Aux Cayes Fintech Co. Ltd., has run an unlicensed digital asset exchange since Oct. 15, 2021.

The SEC said OKX promoted its platform and collected transaction fees and so is subject to criminal penalties.

Nine individuals are also accused of promoting the unlicensed platform on social media, according to financial consultancy Kapronasia.

The SEC also said that OKX failed to implement adequate user identity verification and anti-money laundering protocols, potentially putting Thai investors at risk.

OKX app on a smartphone. Photo from X

The exchange did not comply with reporting requirements, hampering regulatory oversight.

If convicted, OKX and those involved face two to five years in prison, fines ranging from 200,000 to 500,000 baht (US$5,890-US$14,630), and a daily fine of 10,000 baht (US$293) until they meet regulatory requirements, Thanh Nien newspaper reported.

The action is part of the SEC’s crackdown on unlicensed crypto exchanges.

In 2021 it even filed a complaint against Binance, the world’s largest crypto exchange, for operating without a license. Binance later partnered with Gulf Energy to launch a regulated platform in Thailand.

In December 2023 the SEC took action against Bybit for the same reason.

OKX has faced regulatory scrutiny in other markets, and made a $504 million settlement with the U.S. government over unlicensed money transmission activities.