ID check required for new crypto accounts
3 Dip-chip machine to be used from September
published : 3 May 2021 at 04:30
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Opening of new cryptocurrency accounts may slow in the second half of this year as the Anti-Money Laundering Office (Amlo) announced local digital exchanges must verify their customers identities through a dip-chip machine that requires clients to be physically present.
The dip-chip requirement comes into effect in September, said Poramin Insom, co-founder and director of Satang Corp.
As of April 26, there were 697,780 cryptocurrency accounts nationwide, a surge from 160,000 at the end of last year. Most digital asset exchanges are still busy preparing their systems to accommodate the growing number of clients as new account applications continue to flow in. However, this growth may be curbed if the application process becomes more complicated, said Mr Poramin.
Thailandâs New Cryptocurrency Regulation Requires Users to Be Physically Present to Open Accounts
The Thai government has reportedly imposed a new cryptocurrency requirement. Crypto exchanges will be required to verify users’ identities using a machine that requires the customers to be physically present.
Thailand’s New Crypto Rules
The Thai Anti-Money Laundering Office (Amlo) has announced that starting in July “local digital exchanges must verify their customers’ identities through a ‘dip-chip’ machine that requires clients to be physically present,” the Bangkok Post reported.
Currently, the account opening process at crypto exchanges is done entirely online. To approve a new account, exchanges must ensure that the documents submitted by customers comply with the regulations set by the Thai Securities and Exchange Commission (SEC) for the know-your-customer (KYC) process and suitability test.
Starting July, AMLO will require all exchanges to use dip-chip machines for identity verification.
This move will need all users that want to open digital accounts to visit exchanges physically.
Players in the Thai crypto space believe this change will inhibit the growth of the nascent sector.
Thailand’s financial watchdogs are gearing up to introduce new policies that will require crypto exchanges to verify the identities of new users in person. The country’s Anti-Money Laundering Office (AMLO) will mandate exchanges to use a dip-chip machine for identity verification starting July 2021. Reportedly, dip-chip machines scan a chip integrated into Thai citizen ID cards.
Thailand Mandates Physical ID Checks of Crypto Investors
Thailand Mandates Physical ID Checks of Crypto Investors
The AML law will come into effect from July.
Arnab Shome
2021-05-03T11:00:37+00:00
2021-05-03T11:50:20+00:00 Photo: Thailand
The Thailand government is making the regulations around crypto exchanges more strict as it mandated the verification of customer identities using a ‘dip-chip’ machine, which requires the physical presence of the clients. These machines are used for ID verifications across gold shops in the country.
Bangkok Post reported on Monday that the new rules around the anti-money laundering practices of the crypto exchanges will come into effect in July. The rules might slow down the onboarding process on Thai crypto exchanges from the second half of this year.