Thailand’s SEC files criminal complaint against OKX for operating without a license

Thailand Securities and Exchange Commission (SEC) has filed a complaint against popular crypto exchange OKX for operating in the country without a license. The criminal complaint was against OKX operator Aux Cayes FinTech Co. Ltd and nine exchange associates.

In the complaint filed with the Economic Crime Suppression Division (ECD), the SEC claimed that OKX operating without a license in the country violates the Emergency Decree on Digital Asset Businesses (2018). It stated that the exchange started operating in Thailand in October 2021 and charged 0.1% in transaction fees despite operating without a license.

It said:

“The OKX activities are liable to be an operation of digital asset exchange business under Section 3 of the Emergency Decree, for which OKX has not obtained a license, in violation of Section 26, and subject to offenses and penalties under Section 66 of the Emergency Decree.”

Thailand’s SEC names OKX partners

Meanwhile, the regulator also noted that OKX was promoting its unlicensed operations on social media using platforms such as Facebook, X (formerly Twitter), Telegram, YouTube, Discord, and OpenChat.

The SEC also identified nine people who helped the exchange promote its services on social media and filed criminal complaints against them, noting that they helped the exchange grow its user base in the country. It noted that their actions also violated the digital assets law.

The regulator said:

“The actions of these nine individuals increased OKX’s visibility and attracted more users to its services. As a result, their conduct constitutes assisting or facilitating OKX in operating a digital asset exchange without license, in violation of Section 26 of the Emergency Decree.”

With the legal action initiated, the regulator is seeking to impose penalties as stipulated under the law against OKX and its promoters. However, the filing is merely the start of the criminal procedure and is not proof of guilt. It is now up to the prosecutors to determine whether they will proceed with the case. The SEC can only monitor the proceedings and cooperate with relevant agencies that handle them.

Nevertheless, if OKX and its promoters are found guilty, they could face serious sanctions. Under the Digital Assets Decree, anyone operating an unlicensed exchange could face between two to five years in prison along with a fine of 200,000 baht ($5,894) to 500,000 baht ($14,737) and 10,000 baht ($295) for each day of default.

Thailand’s SEC warns about unlicensed exchanges

Meanwhile, the regulator has warned the public and investors about using unlicensed digital assets exchanges in the country. It noted such platforms come with great risk as there is no legal protection for the users, and they could be victims of money laundering and scams.

It added that the list of digital asset businesses that can operate in the country is accessible on its website. According to the information on the website, 32 crypto businesses are already licensed to operate, with notable names including Binance and Upbit.

Interestingly, this is not the first time Thai authorities have targeted crypto exchanges for operating without licenses. In 2024, they announced plans to block all unlicensed exchanges in the country by submitting their names to the Ministry of Digital Economy and Society. They also filed a similar complaint against Bybit in 2023.

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