Thursday, May 26, 2022

Thai SEC schedules hearings to address crypto investor qualifications

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A serious monetary regulator in Thailand is seeking to decide {qualifications} for cryptocurrency merchants to make sure investor safety.

The Securities and Change Fee of Thailand has scheduled a public listening to this month to handle particular necessities for traders who wish to open a crypto buying and selling account, native information company The Bangkok Submit reported Monday.

By initiating the brand new qualification system, the Thai SEC intends to make sure that new retail traders shifting into crypto buying and selling have enough monetary assets to soak up dangers from the extremely risky costs of crypto.

The Thai SEC’s secretary-general, Ruenvadee Suwanmongkol, hinted that Thailand’s upcoming crypto investor qualification might contain necessities corresponding to age, buying and selling expertise and monetary information in addition to sure wealth ranges:

“Cryptocurrencies have excessive dangers for traders. We should always set some screening standards corresponding to age, buying and selling expertise and degree of income or wealth to restrict dangers. These limits exist already for high-yield bonds, that are solely accessible to some sorts of traders.”

The official additionally famous crypto traders must be properly knowledgeable in regards to the dangers of cryptocurrency buying and selling. “Digital property are an enormous problem, not solely in Thailand however for world regulators,” she added.

The brand new qualification system apparently got here below the impetus of Thai Finance Minister Arkhom Termpittayapaisith, who requested the SEC to oversee native digital exchanges to guard new traders. Native authorities are particularly involved about novice crypto traders shifting into the business amid a large surge of cryptocurrencies like Bitcoin (BTC).

Final week, Termpittayapaisith expressed concerns about surging crypto trading volumes in Thailand, warning traders of the huge dangers related to crypto buying and selling. “Cryptocurrencies have huge danger,” the official stated. “Danger consciousness will assist these traders in avoiding extreme hypothesis on these property.”

In keeping with knowledge collected by The Bangkok Submit, crypto purchases by Thai retail traders have been constantly growing, from 500 million baht ($16.7 million) in November 2020 to 1.1 billion baht ($40 million) in January. The SEC reportedly stated that the variety of new crypto traders surged by 124,000 accounts within the first week of February, totaling practically 600,000 accounts as of Feb. 8.

In keeping with the info, Bitcoin was probably the most traded cryptocurrency on Thai exchanges in January, accounting for over 40% of the full buying and selling quantity. The cryptocurrency is adopted by Ether (ETH), with about 24%, and Dogecoin (DOGE) and XRP, accounting for 19% and 12%, respectively.