A major bank in Thailand, Bangkok Bank, has reportedly terminated the bank account of a local cryptocurrency exchange, Thai Digital Asset Exchange (TDAX) “on the grounds that TDAX’s business operations are not in accordance with its business purpose registered with the Commerce Ministry,” the news outlet detailed. The bank questioned TDAX’s lack of an operating licence.
The move comes following an announcement by the central bank prohibiting financial institutions from five cryptocurrency-related activities. With this, it “becomes the first domestic financial institution to halt transactions involving trading of cryptocurrencies,” the Bangkok Post reported.
Digital asset exchange says three other lenders continuing with transactions.
Meanwhile, the Thai government is actively working on providing a legal framework for cryptocurrencies.
TDAX, a privately owned Thai exchange for the trading of digital assets, registered its business with the Commerce Ministry’s Business Development Department as a digital currency business upon receiving.
TDAX is a local cryptocurrency exchange with 5.5 million baht (~USD$175,000) worth of registered capital, the publication noted. The exchange’s founder and CEO, Poramin Insom, told the news outlet that the company “plans to increase capital soon in order to apply for an initial coin offering (ICO) licence with the [Thai] Securities and Exchange Commission.”
Regarding the exchange’s bank account with Bangkok Bank, the CEO clarified:
“The bank called and asked whether there was an operating licence for proof, but I answered that this business was not under legal jurisdiction [hence the absence of an operating licence], so the bank said it would terminate the company’s bank account [with Bangkok Bank], as this business had no licence,” Poramin said.
Termination of TDAX’s bank account with Bangkok Bank has not affected the trading of bitcoin and 10 other cryptocurrencies, he said.
A source close to the matter at the bank told the news outlet that TDAX had opened a savings account at the bank. However, bank officials claimed that some documents were missing, “therefore the bank decided to block all transactions through the account,” the publication noted, citing the announcement by the central bank a week prior.