Thailand’s stock exchange is preparing to launch a new trading platform that would not include cryptocurrencies.
Crypto Exempted From SET’s Planned Trading Platform
According to the Bangkok Post on Wednesday (Jan. 20, 2021) the Stock Exchange of Thailand (SET) announced plans to launch a digital assets trading platform. The upcoming platform will include different tokens except cryptocurrencies.
The Thailand bourse noted that the tokens must meet certain criteria before they would be listed on the platform. The requirements include:
“First, the token must have an underlying asset that investors can analyze on value. Second, it must be a valuable product that supports economic activities. Third, the product must have benefits to society and the environment.”
Meanwhile, Kitti Sutthiatthasil, the SET’s executive vice-president noted that crypto assets cannot be listed on the trading platform because they do not meet the above criteria. While Kitti acknowledged that some countries were adopting crypto because of their weakening economy, the SET executive stated that cryptocurrency could also be used for money laundering.
Kitti added that with Thailand’s strong economy and stable currency, there was no imminent need for the bourse to support cryptocurrency.
Kasikorn Business Technology Group (KBTG), a branch of the Kasikornbank, will be in charge of sourcing and screening products entering the new marketplace. The KBTG has worked with the SET to develop a blockchain and digital assets investment service which seeks to join Thailand-based exchanges, ICOs, and digital wallets under one platform.
As reported by BTCManager, SET first revealed plans of its digital asset platform back in 2019. The Thailand bourse is planning to launch the new trading platform in the second half of 2021.
Major Thai Crypto Exchange Receives Notice From Country’s Regulator
Meanwhile, local cryptocurrency exchange Bitkub Online temporarily shut down after receiving a notice from Thailand’s Securities and Exchange Commission (SEC) to put its platform in order. The crypto exchange experienced three outages in January alone, following a surge in demand for cryptocurrencies.
According to the report, Bitkub’s daily trading volume skyrocketed from 200-300 million baht to 1-2 billion. The inability to handle the rise in volume caused the platform’s trading system to crash multiple times. Consequently, the Thai regulator in its notice gave the crypto exchange five days to resolve a list of issues on its platform.
Thailand’s strict crypto regulatory framework, while it seeks to protect investors, has caused some exchanges to shutter their services in the country.