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.
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.
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.
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