Financial regulators in Thailand are planning to impose stricter regulations on digital assets in order to better reflect the global market and protect investors. The move comes after a turbulent year in which Asians have sustained significant losses.
Thai SEC to develop stricter rules for crypto
According to reports on Dec. 13, the Thai Securities and Exchange Commission is planning to implement stricter regulations for crypto assets.
The regulator cites the same “investor protection” motives, but tighter regulations typically make things more difficult for retail investors.
Moreover, Thai investors using the Zipmex platform were adversely affected by the bankruptcy of the Celsius Network. When FTX crashed in early November, it had the strongest impact on retail investors in Asia.
The recent events, in the opinion of the Thai SEC, demonstrate the industry’s vulnerability and the need for better regulation.
Prioritizing investor security
The regulator cited new regulations enacted in the United Kingdom, Japan, and Singapore as examples of what it hopes to replicate. However, Singapore retains its place as the region’s crypto hub and has no intention of stifling innovation or investment.
The Thai SEC is establishing a working committee to investigate the cryptocurrency industry. In addition, it will include representatives from relevant government agencies and the private sector. They will be tasked with proposing changes to the laws in order to adapt to the shifting environment.
The SEC intends to crack down on crypto-related advertising and product promotions, particularly those that employ celebrities and influencers. This month, there was a similar crackdown in the US, where several well-known athletes were paid to promote FTX.
The regulator is also keeping an eye out for new potential threats and has promised to tighten regulations. The military-backed government of Thailand has outlawed the use of cryptocurrencies for payments, despite the fact that cryptocurrency trading is extremely popular in the country.
As of now, crypto trading is legal and accessible in Thailand, but it is unclear what regulatory measures the government will take to limit this activity going forward.
Moreover, the Bank of Thailand is planning to launch a retail CBDC pilot program before the end of the year. Thailand, like China, seeks a programmable currency that the government can monitor and control.