Thai Regulator Warns About Scam Entities Claiming To Be Crypto Trading Firms

The Thai Securities and Exchange Commission (SEC) is currently warning the public about companies claiming to be cryptocurrency exchanges that are scams operating overseas. The information was released by the Bangkok Post on August 25.

Thai SEC Warns About Scams
Scams have been something very common in the cryptocurrency market over the last few years. Several companies, including exchanges, have been trying to steal users’ funds through different methodologies.

Pol Lt Co Woranan Silam, a spokesman for the Department of Special Investigation, relayed the SEC’s warning to the public. The regulatory agency informed that FX Trading Corporation is not authorised to trade virtual currencies as the company claims. However, he said that this is not the only company involved in this scam.

At the moment, there is no information regarding the exact number of firms involved and how much money they were able to gather from individuals in the country. According to the Bangkok Post, the SEC authorised just three companies to operate virtual currency businesses in Thailand. These companies are Bitcoin Co (www.bx.in.th), Bitkub Online Co (www.bitkub.co.th) and Satang Corporation Co (www.satang.pr). Coins TH Co (www.coins.co.th) is the only authorised crypto broker or dealer authorised to operate in the country.

As these firms are registered in other jurisdictions, Thai authorities are requesting cooperation from these countries and the international community. The goal is to find different ways to reduce illegal activities from scammers and protect investors with new regulations.

At the moment, just a few countries were able to create regulations for digital assets and cryptocurrencies. Switzerland and Malta are just two of the countries that were able to implement clear regulations for the crypto market. The main goal is to fight against scammers and protect investors.

The United States is also working in order to impose crypto regulations. The market is still in its early years and regulators need to better understand how these assets work and could affect the whole economy.

Back in 2017, when Bitcoin (BTC) was reaching its highest price ever, many Initial Coin Offerings (ICOs) were released to the market. Many of these ICOs were just scams that aimed at stealing users funds. This is why countries like South Korea or China directly banned ICOs from taking place in their territories.