Thailand’s Securities and Exchange Commission (SEC) recently stated that Q Exchange, a joint project of South Korea and Thailand, does not abide by the cryptocurrency laws presented forward by the commission, and people should remain cautious of their activities on the exchange. The regulatory body confirmed that the operations taking place on this particular exchange do not follow the laws specified by the commission for security purposes.
The regulated body stated in its official post that:
The SEC disclosed that Q Exchange Limited is not a licensed digital asset operator. People and investors should be cautious if they are persuaded to receive digital asset exchange services from unauthorized users. Because it may not be protected by law.
Thailand is one of the few countries that have employed laws regarding cryptocurrency operations taking place. According to the laws presented forward by the government of Thailand, cryptocurrency exchange operators and the platforms doing their Initial Coin Offerings (ICO) have to take permission from the government before performing any kind of activity. This framework of regulation was presented forward by the country in May this year, while it has also shown plans to further tighten up its cryptocurrency regulatory framework.
Prevalence of illegal and manipulative activities in the crypto space is pretty common. Various exchanges have often been center of attacks by various hackers and are often charged for carrying out illegal and suspicious activities. The 2014 hack on the bitcoin exchange Mt. Gox is notoriously famous in the crypto space. Since then, various countries have been looking forward to deploying regulatory frameworks on the operations taking place on such exchanges.
Recently, the Deputy Prime Minister of Thailand also expressed his intent to further enforce cryptocurrency laws so that people are safeguarded from the malicious activities linked to cryptos.
As of now, there is a lack of regulatory frameworks in the cryptocurrency market. Cryptocurrencies are largely used by many to perform illegal activities as the entire network is anonymous. Money laundering has been made very easy as a result the blockchain technology that is used at the core of the crypto world. Lack of regulation is one of the reasons why the general trust among the public regarding cryptos is very low. ICOs are also used as a tool by many fraudulent operators to gain large amounts of money from the people.
Previously, Peercoin’s Project Leader stated talking to BlockPublisher:
Absolutely, until regulation is global and strict we’ll keep seeing this ICO scams taking money from common people who have no skills to differentiate between coins and ICOs.
If this market is to shift from a rather negative area of operation, regulations seem to be a must. But then again, some proponents of the cryptocurrencies argue that the essence of cryptos lies in no intervention from governmental parties. But in order to tackle the relatively negative usage of cryptos, regulatory frameworks are required. It will be interesting to see how things turn out as more and more official developments are made to incorporate cryptos in the modern financial framework of the world by official authorities.
The full announcement made by the Thai SEC regarding Q Exchange can be found here.