Thailand SEC sets regulations for new crypto players


Thailand’s Securities and Exchange Commission issued a series of disclosures that would potentially have a regulatory impact on portfolios of cryptocurrency investors and managers.

A public consultation scheduled this month will determine qualifications for digital currency investors who plan to open a cryptocurrency trading account.

Effective February 24, digital asset and crypto fund managers, as well as investment advisers, will be mandated to secure a license for them to be allowed to launch their businesses, the Bangkok Post revealed.

Widespread adoption and investor safety

Based on the report, the SEC is concerned for investor safety in the wake of the recent rapid advance in the prices of Bitcoin (BTC) and other leading digital assets and the resulting deluge of sign-ups to local virtual currency exchanges.

“We should establish some screening criteria like age, trading experience and level of revenue or wealth to reduce risks,” SEC secretary-general Ruenvadee Suwanmongkol said in remarks quoted by CoinDesk.

One of the prerequisites for electronic currency traders is to ensure new retail players opening crypto trading accounts have enough financial buffers to cushion the risk from unexpected price changes.

Last week, Thai Finance Minister Arkhom Termpittayapaisith expressed worries about the increasing volume of digital currency trading in the country, warning investors of the huge risks linked with crypto trading.

“Cryptocurrencies have huge risks… risk awareness will help those investors in avoiding excessive speculation on those assets,” Termpittayapaisith said in remarks quoted by Helen Partz of CoinTelegraph.

Numbers keep growing

According to regulators, the number of new crypto investors grew by 124,000 accounts in the first week this month, totaling almost 600,000 accounts as of February 8.

The SEC said it would assume any fund advisers or investors who fail to abide by the current rules and operating businesses without a permit could be forced to shut down operations.

Thailand has already taken measures toward adopting digital currencies, introducing new policies to welcome the business and opportunities that blockchain brings.

Image courtesy of Sabrina & Friends/YouTube Screenshot

Jet Encila

Published by
Jet Encila

Recent Posts

Katie Holmes not forcing Emilio Vitolo to propose to her

Katie Holmes and Emilio Vitolo have only been dating for less than a year, but…

1 min ago

Jennifer Aniston gets a makeover before dating mystery man: Rumor

Jennifer Aniston is, allegedly, back in the dating scene. According to In Touch Weekly, Jennifer…

2 mins ago

Prince William still struggling with Rose Hanbury cheating rumors?

Prince William is, allegedly, struggling with a lot of things. According to In Touch Weekly,…

9 mins ago