Bangkok, 14 January 2019 ? The SEC announced that the Ministry of Finance, under the recommendation of the SEC Board, had denied a digital asset business licence for Coin Asset Co., Ltd.
Earlier, seven applicants* submitted an application for a digital asset business licence under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018); four of them were granted a licence, and two rejected.
Today, the Ministry of Finance denied a digital asset exchange licence for Coin Asset (website: coinasset.co.th) because a major change to the company's management ? i.e., three out of four directors responsible for the important work systems resigned ? affected the readiness of the company's important work systems. Subsequently, the company failed to meet the standards on work systems. For example, the systems for custody of client assets and Know Your Customer (KYC) were inconsistent with the standards accepted by the Anti-Money Laundering Office.
As a result of the application rejection, Coin Asset, which had been operating business by virtue of the Transitional Provisions of the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018), must cease operation; however, to ensure proper proceeding of related matters including notification to the clients regarding asset refunds or asset transfers to other digital asset operators according to the clients? order, the Ministry of Finance is allowing the company to continue its business operation until 21 January 2019.
Regarding clients? assets under custody, the company is requested to transfer or return the assets according to the clients? order and report the results of the matter to the SEC. The SEC has already notified Coin Asset in writing of the required proceeding. In any case, the application rejection this time does not invalidate the company's right to apply for a digital asset business licence in the future as long as the application criteria are met.
For more details of the rules and regulations governing application for digital asset business licences or information on digital asset investment, please visit www.sec.or.th/digitalasset or contact SEC Help Center at Hotline 1207.??
* While their applications were being considered, the seven applicants operated digital asset businesses by virtue of the Transitional Provisions of the Emergency Degree on Digital Asset Businesses B.E. 2561 (2018).??