A device that will confirm the identity of new crypto users might be required to register on exchange platforms in the future.
The dip-chip machine is thought to start being used in September. New customers will have to scan the chip placed in their ID cards. Only after the identity is verified they will be able to open an exchange account and begin their crypto trading.
Know-your-customer (KYC) measures in Thailand currently demand new users to present their documents online. Then they have to wait until their identity is verified and that there is nothing that violates KYC regulations.
While the number of exchange customers is growing, dip-chip devices are thought to reduce the waiting time and increase efficiency and transparency.
“Most digital asset exchanges are still busy preparing their systems to accommodate the growing number of clients as new account applications continue to flow in. However, this growth may be curbed if the application process becomes more complicated.”Poramin Insom, co-founder and director of Satang Corp.
Cryptocurrency exchanges must register transactions on a database and report any transaction that surpasses 1.8 million baht under the money laundering law.
The Anti-Money Laundering Act in Thailand implements the rules on gold shops as well. They require clients to present their ID when purchasing or selling gold worth more than 100,000 baht. These shops have been utilizing ID card dip-chip machines for over four years now.