Thailand will use “Dip-chip’ machine for new accounts creation at cryptocurrency exchanges

Anti-Money Laundering Office (AMLO) of Thailand announced that as of July, crypto exchanges must verify the identities of new customers in-person using a “dip-chip” machine, according to Bangkok Post on May 3.

The dip-chip machines will scan a chip embedded in Thai citizen ID cards, requiring customers to be physically present for the verification process. At the moment, new users can verify their identities with crypto exchanges by submitting documents online.

Thailand’s cryptocurrency accounts surge from 160,000 at the end of last year to 697,780 at the end of April.

Poramin Insom, co-founder and director of Satang Corp said: “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.”

Thailand’s lawmakers also appear keen to apply the same regulations for gold sales worth more than 100,000 THB (roughly $3,200). Some gold merchants located in the country’s capital, Bangkok, already use dip-chip machines for identity verification.

Cash transactions worth over 100,000 baht also require customers to show their ID cards, while transactions worth over 2 million require business operators to file a report with Amlo. For “suspicious” transactions, the operators file a report without informing the customer.

According to Thai’s SEC, the volume across licensed Thai crypto exchanges increased by nearly 600% from 574.5 million in November to $3.96 billion in April.

Despite the surge in licensed crypto volumes, Thai peer-to-peer trading has seen comparatively muted growth.

While roughly $650,000 worth of Bitcoin traded weekly on top P2P marketplaces Localbitcoins and Paxful combined during November, February’s volumes oscillated between roughly $700,000 and $1 million — an increase of between approximately 10% and 50%. During March, Thai P2P Bitcoin trade volumes slumped from $950,000 to roughly $600,000.

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