Thailand Regulators Develop Stricter Crypto Rules
Thailand’s financial authorities are about to crack down on cryptocurrency. The action comes after a turbulent year in which Asians experienced significant setbacks.
The Thai Securities and Exchange Commission is preparing harsher regulations for crypto assets, according to a Dec. 13 Bangkok Post story.
However, stricter regulations typically make things harder for regular investors. The regulator cites the same “investor protection” objectives.
Furthermore, Thai investors that used the Zipmex platform were negatively impacted by the bankruptcy 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.
Priorities for investor protection
The regulator cited new laws from Singapore, Japan, and the United Kingdom as examples of what it seeks to duplicate. However, Singapore continues to be the region’s centre for cryptocurrencies and does not want to suppress investment or innovation.
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 environment-friendly.
The SEC wants to crack down on cryptocurrency advertising and product marketing, particularly those that make use of influencers and famous people. Similar action was taken last month in the US after it was discovered that some well-known athletes were receiving payments to endorse FTX.
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 ahead.
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. In September, it was revealed that Thailand’s hopes of becoming a crypto hub had been shattered by more onerous laws.
Plans for Thailand CBDC are pursued
Thailand’s central bank is eager to emulate China’s example by launching its own digital currency (CBDC).
In addition, the Bank of Thailand is getting ready to start a retail CBDC pilot program before the year is over. Thailand wants a programmable money that the government can monitor and regulate, just like China does.
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