Thailand is trying to introduce a new set of rules for retail crypto investors specifically aimed at those looking to open accounts. The Thai financial watchdog could require domestic crypto exchanges to ask traders for proof of income.
The Thai SEC could also ask crypto investors to prove their knowledge of the market
According to a Bloomberg reportThailand’s Securities and Exchange Commission (SEC) is likely preparing the reason for investors to provide evidence of their income or assets prior to opening an account.
Ruenvadee Suwanmongkol, the general secretary of the country’s financial watchdog, pointed out that anyone who is not allowed to trade cryptocurrencies through their accounts can invest through licensed managers. She added:
This is a big problem as most of the crypto investors on domestic exchanges are very young, e.g. B. Students and young people. We know these people love innovation and technology, but investing in these assets comes with tremendous risk.
Additionally, the secretary general said unqualified crypto traders could only invest through financial advisors if they were licensed by the SEC.
The watchdog will announce its new rules for crypto trading later this week before a public hearing is scheduled for March. The officials involved in the meetings are expected to evaluate recommendations from local exchanges and brokers.
Though not confirmed, the Secretary General suggested that investors need to demonstrate some market knowledge before being allowed to open crypto accounts for trading.
So far six licensed crypto exchanges in Thailand
The Thai SEC’s rhetoric is now shifting to cautious rhetoric regarding the risks of cryptocurrencies. However, they continue to grant licenses to crypto companies in the nation. In terms of approved digital asset exchanges, only six are legally operating in Thailand to date.
They are Bitkub, BX, Satang Pro, Huobi Thailand, ERX, and Zipmex. All six licensed crypto exchanges are approved for both cryptocurrencies and digital tokens, with the exception of ERX, which is only approved for the latter.
The SEC differentiates cryptocurrencies as “created to be a medium of exchange for the acquisition of goods, services or other rights”.
On the flip side, digital tokens are created “to determine a person’s right to participate in an investment in a project or business, or to acquire certain goods, services or other rights under an agreement between the issuer and the owner,” the said Financial guardian.
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