As Thailand is set to confirm its first licensed cryptocurrency entity this month, an exchange operating without a licence has been condemned by regulators.
Thailand’s financial regulator has told a cryptocurrency exchange to cease advertising and warned citizens not to use it due to legal uncertainty, the Thai Securities and Exchange Commission (Thai SEC) reported Tuesday, Nov. 13.
In the release, the Thai SEC said it had not officially endorsed Q Exchange, a joint Thai and South Korean venture, within the framework of its new cryptocurrency laws.
The Q Exchange, which reportedly offers ten crypto including Ethereum (ETH) and
Bitcoin (BTC), noted that it had plans to launch its Q Token on Oct. 25, Thai news outlet Lokwannee reports. Cointelegraph notes that although several Thai news sources reported on the launch and announcements surrounding the Q Exchange, we have been unable to locate a current online presence for the exchange.
Following a royal decree in May this year, cryptocurrency businesses such as exchanges and Initial Coin Offering (ICO) operators must seek permission from and register with authorities before beginning activities in Thailand.
The first officially-licensed platform should appear before the end of November, Cointelegraph reported last week.
“The SEC would like to inform the public that Q Exchange Co Ltd is not a licensed digital business operator,” the Thai SEC writes, adding:
“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.”
Thailand has sought to strictly control its domestic crypto market this year, with various actors calling for tighter controls in addition to the regulatory package now signed into law.
Earlier this month, the country’s deputy prime minister highlighted the need for additional security practices in order to safeguard against the threat of malicious actors using cryptocurrency.