Financial regulators in Thailand are preparing to tighten restrictions surrounding new account cosmos at crypto nugget exchanges.

According to a Monday report from Bangkok Post, the country'southward Anti-Money Laundering Office announced that equally of July, crypto exchanges must verify the identities of new customers in-person using a "dip-chip" machine.

While new users can currently verify their identities with crypto exchanges by submitting documents online, the dip-chip machines will scan a chip embedded in Thai citizen ID cards, requiring customers to be physically present for the verification process. The new rules may also forbid foreign investors — who are unable to obtain Thai ID cards — from accessing exchanges in the country.

Lawmakers too announced keen to apply the same regulations for gold sales worth more than 100,000 Thai baht (roughly $3,200). Some golden merchants located in the country's capital, Bangkok, already utilize dip-chip machines for identity verification.

The tightening of regulations comes as crypto assets are surging in popularity in Thailand, with the number of accounts with Thai crypto exchanges spiking from 160,000 at the cease of 2022 to nearly 700,000 at the start of May. Manufacture executives have expressed concerns that the new rules will stifle the growth of Thailand's crypto sector. Poramin Insom, co-founder and director of Thai crypto exchange Satang Corp, stated:

"Virtually digital asset exchanges are still busy preparing their systems to accommodate the growing number of clients equally new account applications keep to flow in. However, this growth may be curbed if the application process becomes more than complicated."

The Thailand Digital Asset Operators Trade Clan is planning to host a debate regarding the incoming regulations at an upcoming forum, enabling dialogue with regulatory agencies including the Securities and Commutation Commission and AMLO.

Bitkub, Thailand's largest exchange, which was temporarily suspended by the SEC in Jan, declined to annotate on the new Know Your Customer requirements, stating that the new rules had not been officially implemented yet.

In mid-March, the central banking concern outlawed the utilize of a stablecoin pegged to the Thai baht.