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Crypto News Updates

In-Person ID Check To Become Mandatory For Bitcoin Exchange Users In Thailand

Thailand is reportedly preparing to mandate in-person, “dip-chip” AML verifications before opening local bitcoin exchange accounts.

The government of Thailand will require local cryptocurrency exchanges to verify their customers’ identity in person using a “dip-chip” machine that registers identification cards.

The country’s Anti-Money Laundering Office (AMLO) will be instituting in September, according to the Bangkok Post.

“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,” said Poramin Insom, co-founder and director of local exchange Satang Corp. “However, this growth may be curbed if the application process becomes more complicated.”

As of April 26, there were 697,780 cryptocurrency accounts nationwide, a surge from 160,000 at the end of last year, per the report. It is expected that the new rules will slow down the opening of new cryptocurrency exchange accounts in the second half of this year, and “digital asset intermediaries plan to discuss the issue at a forum held by the Thailand Digital Asset Operators Trade Association,” per the Post.

The “dip-chip” requirement is currently used for checking IDs at gold shops in the country, per the report.

The announcement is likely discouraging for many bitcoin investors, as the process of opening a cryptocurrency exchange account in Thailand has been entirely electronic up to now. Requiring potential investors to submit in-person identity verification is also antithetical to Bitcoin’s pseudonymous nature, imposing rules that would force bitcoiners to reveal their real-world identities. 

Source: Bitcoin magazine

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Crypto News Updates

Olympia Trust, Knox Partner On Bitcoin Custody Service

Olympia Trust Company expects to receive an exclusive Canadian license to use a proprietary bitcoin custody system developed by Knox.

Olympia Trust Company, a Canada-based, non-deposit-taking trust company, will soon receive an exclusive Canadian license to use a proprietary bitcoin custody system developed by Knox, according to a press release.

Both companies will determine the final shape of the agreement following the completion of due diligence.

“Upon completion of the transaction, it is anticipated that Olympia Trust will be one of the few Canadian financial institutions able to hold bitcoin as a ‘qualified custodian,’” per the release.
It is also anticipated that Olympia Trust will be able to provide custodial services to Investment Industry Regulatory Organization of Canada (IIROC) regulated investment dealers who offer bitcoin to their clients.”

The deal will see Knox, a Canada-based insured Bitcoin custody provider that focuses on cryptocurrency key management, receive a one-time fee of $500,000 and a share of future profits generated by the license and assets acquired by Olympia from Knox, per the release.

In addition to using the proprietary Bitcoin custody system, Olympia Trust will also acquire certain facilities and insurance policies used by Knox.

“Being able to offer Bitcoin custody is a natural evolution of our traditional corporate trust services,” said Craig Skauge, president and CEO of Olympia Trust, in the release. “The appetite for institutional investors to hold bitcoin continues to grow.’’

Alex Daskalov, CEO of Knox, said that the struggles of the Canadian market to find quality institutional bitcoin custody options would be coming to an end with this entry of Olympia Trust.

Both parties are expected to sign the definitive agreements of the deal in the third quarter of 2021, per the release.

Source: Bitcoin magazine