By The Nation
Meanwhile, a seventh application is still under consideration.
Digital asset businesses are regulated under the Emergency Decree on Digital Asset Businesses BE 2561 (2018).
The four applicants granted a licence comprise three digital asset exchanges – Bitcoin Exchange Co Ltd, Bitkub Online Co Ltd and Satang Corporation – and a cryptocurrency broker and dealer, Coins TH Co Ltd.
The two rejected applicants are Cash2coin Co Ltd and Asia Digital Exchange Co Ltd.
These two firms failed to meet the approval criteria regarding important work systems.
For example, the systems for custody of client assets and know your customer were inconsistent with the SEC’s acceptable standards, while the sufficiency of their IT security and cyber-security systems could not be verified.
As a result of the rejections, Cash2coin and Asia Digital Exchange, which had been operating business by virtue of the Transitional Provisions of the Emergency Decree on Digital Asset Businesses, have become subject to business cessation.
However, to ensure proper proceeding of related matters, including notification to their clients regarding asset refunds or asset transfers to other digital asset operators in accordance with the clients’ orders, the Finance Ministry is allowing both companies to continue their operations until January 14.
Regarding clients’ assets under custody, the two companies are requested to transfer or return the assets according to the clients’ orders and notify the results to the SEC.
In any case, the application rejections at this time does not invalidate their right to apply for a digital-asset business licence in the future, as long as the application criteria are met.
The application for a digital-asset exchange licence filed by Coin Asset Co Ltd is still under consideration because there has been a change of company executives, which is material information for the consideration of the application.
While the Finance Ministry is considering the material change, the company may continue business operation by virtue of the Transitional Provisions of the Emergency Decree.