Thailand regulators are about to get tough on crypto. The move follows a tumultuous year in which Asians have suffered major losses.
The Thai Securities and Exchange Commission is contemplating stricter regulations for crypto assets, according to a Dec. 13 Bangkok Post story. The regulator cites the same “investor protection” motivations, but tighter rules usually make things tougher for retail investors.
Furthermore, Thai investors that used the Zipmex platform were negatively impacted by the collapse of the Celsius Network. When FTX fell in early November, Asian retail investors were likewise the ones who suffered the most. The recent occurrences “show the vulnerability of the digital asset business and the absence of effective monitoring,” according to the Thai SEC.
The agency cited new laws from Singapore, Japan, and the United Kingdom as examples of what it seeks to duplicate. Singapore, though, is still the region’s center for cryptocurrency and does not want to suppress innovation.
Thailand Regulators Setting Office in Preparation for the Future
The SEC of Thailand is forming a working committee to investigate the cryptocurrency market. It will also include representatives from pertinent government and commercial sector organizations. They will be entrusted with coming up with suggestions for how to make the laws more environmentally-friendly. They will be entrusted with coming up with suggestions for how to make the laws more environmentally-friendly.
The agency has promised to strengthen regulations while also keeping an eye on any new potential dangers. In Thailand, cryptocurrency trading is highly common, but the military-backed government has outlawed using it to make payments.
In Thailand, cryptocurrency trading is still legal and accessible, but it is unclear how the government will limit it moving forward. The central bank and authorities disagree with the claims made regularly by Thailand’s tourist ministry that the nation is a hotspot for the cryptocurrency industry. The hopes of Thailand being a center for cryptocurrency were reportedly crushed in September due to more stringent rules.