Thailand?s Securities And Exchange Commission (SEC) warned the country?s citizens against trading through unlicensed digital currency exchanges.
The Thai regulator has particularly warned against 14 exchanges. The operators running the exchanges and their websites have been trying to encourage traders to buy and sell cryptocurrencies through their services. The SEC stated that the exchanges have not been cleared to run cryptocurrency-related businesses in Thailand. Only seven have so far gained temporary licenses to carry out digital currency-related activities in the country.
Thailand?s SEC has issued a statement warning the public against 14 cryptocurrency websites that are soliciting customers in buying and selling cryptos and related products. Which are these unauthorized companies? https://t.co/MIqs53r9lF #CrytocurrencyWebsites #Cryptocurrency pic.twitter.com/rAqsRfEWBQ
? ICOrush Official (@IC0rush) November 26, 2018
The SEC wants to discourage unlicensed operators to protect investors
The SEC made the announcement warning about the exchanges on Friday. The financial regulator revealed in its statement that it issued the warning after receiving complaints about the crypto exchanges. They have reportedly been marketing themselves through social media platforms.
The 14 crypto-exchange websites include lnwexchanger.com, ecurrencythailand.com, ecurrencyplus.com, gamershoppings.com, exchangercoin.com, emoneythai.com, i-exch.com, superrichexchanger.com, digicardshop.com, egtexchange.com, thaiexchanger.com, misterchanger.com, payniex.com, and R Exchange through its Facebook page.
?The public and investors should be cautious in engaging in digital asset and electronic money trades with this firm because such actions might not be lawfully protected by the SEC,? stated the Thai SEC.
Some of the operators have already taken down their crypto offerings after the SEC warning. The Thai financial regulatory authority had previously warned the country?s citizens from using the Q Exchange digital currency exchange. The Thai SEC issued the warning due to legal uncertainties since the exchange did not have an official operating license in Thailand. The exchange offered access to a variety of cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH).
Employing strict measures to streamline the market
The Thai SEC has been strict towards the cryptocurrency market as part of its plan to protect Thai cryptocurrency investors. The regulator has been working towards streamlining the cryptocurrency market in the country. There has been a global call for more regulation in the crypto space especially after the numerous hacks that took place especially this year.
Cryptocurrencies worth millions were stolen and regulators are determined to avoid such incidents in the future. The Thai SEC?s first step is to discourage unregistered operators from running their crypto businesses in Thailand.