Thailand’s Securities and Exchange Commission (SEC) has initiated legal action against the cryptocurrency exchange OKX and nine associated individuals for allegedly operating without the required license.
The SEC’s official website indicates that the criminal complaint was submitted to the Economic Crimes Division (ECD) on March 25, citing violations of the Digital Asset Business Decree enacted in 2018. The agency claims that OKX commenced operations in Thailand in October 2021 and charged transaction fees of 0.1% despite lacking a proper license.
According to the SEC, OKX’s activities qualify as those of a digital asset exchange under the Emergency Order. The exchange is accused of violating Section 26, thus making it liable for penalties outlined in Section 66 of this Order.
Furthermore, the SEC pointed out that OKX promoted its unlicensed operations across various social media platforms, including Facebook, X (formerly Twitter), Telegram, YouTube, Discord, and OpenChat.
In addition to OKX, the SEC has also cited nine individuals who allegedly assisted the exchange in promoting its services on social media. These individuals are accused of contributing to the growth of OKX’s user base, thereby violating digital asset regulations. The SEC contends that their actions facilitated OKX’s unlicensed operations, also in contravention of Section 26 of the Ordinance.
Legal experts suggest that this criminal complaint signals the Thai regulator’s intention to impose penalties on OKX and its promoters. However, the filing represents only an initial stage in the judicial process, with prosecutors needing to determine whether to advance the case. The SEC is expected to oversee the process and coordinate with the relevant authorities.
If found guilty, both OKX and the individuals involved could face significant legal repercussions. The Digital Assets Decree stipulates that those operating an unlicensed exchange may be subjected to imprisonment ranging from two to five years, in addition to fines ranging between 200,000 baht ($5,894) to 500,000 baht ($14,737), plus a daily fine of 10,000 baht ($295) for each day of violation.
Alongside the lawsuit against OKX, the SEC has issued warnings to the public and investors regarding the risks of using unlicensed digital asset exchanges, emphasizing that these platforms may not protect users’ legitimate interests and could be tied to issues such as money laundering and fraud.
For reference, the SEC has a list of licensed digital asset businesses available on its website, currently including 32 licensed cryptocurrency firms in Thailand, such as well-known exchanges like Binance and Upbit.
This action against OKX is part of a broader trend, as Thai authorities have previously targeted unlicensed cryptocurrency exchanges. In 2024, the SEC announced intentions to block all unlicensed operations within the country and submitted the relevant list to the Ministry of Digital Economy and Society. A similar legal case against the exchange Bybit occurred in 2023.
Moreover, in a related development, OKX is currently facing a lawsuit in New York City’s Manhattan District Court for alleged violations of anti-money laundering laws. The exchange has consented to pay a fine of $504 million while continuing its U.S. operations.
Additionally, on February 11, Bloomberg reported that authorities from 27 member states of the European Union are investigating OKX in connection with facilitating money laundering linked to the $1.46 billion hack of Bybit.