In what it says is an effort to protect investors and maintain market integrity, the SEC of Thailand is preparing to implement stricter regulations for digital assets.
Regulation at a difficult time for crypto
The Thai SEC’s new regulations are an effort to counter the various collapses and bankruptcies that have taken place in the crypto sector throughout the course of the last few months.
The agency cites that many investors have suffered heavy losses due to the likes of Celsius, Three Arrows Capital, BlockFi, Voyager Digital, FTX among others.
Advertising is another area that the SEC has highlighted, where cryptocurrency advertising was said to be misleading, further adding to the risks for investors.
Regulation in other parts of Asia
An article for the Bangkok Post highlights how the Thai SEC is seeking to “mirror” regulation that is being seen in other countries.
For example: the Monetary Authority of Singapore (MAS) is walking a line between trying to protect investors whilst also attempting to not put damper on the new technology innovations that are springing up out of the cryptocurrency sector.
Five risk areas have been identified by the MAS, and these are:
“Anti-money laundering and anti-terrorism financing, technology management services, hedging against retail investors, stabilisation of stablecoins, and mitigating against potential financial stability risks.”
In Japan the regulatory system is focused on financial stability. The Financial Services Agency has promulgated that stablecoin issuers have to be “banks, trusts, or fund transfer service providers, and the FSA issues rules on funding in order to protect against stability risks.
Fair regulations can assist investors and traders
The regulatory framework for digital asset trading is still in its early stages, but the Thai SEC’s efforts to introduce stricter regulations and protect investors may be a step in the right direction. As more investors and traders become exposed to the digital asset market, it is essential that the authorities ensure that the market is fair, safe and secure. With the right regulatory measures in place, digital asset trading could become more accessible to a wider range of investors and traders, while also protecting them from potential losses.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/12/thai-sec-about-to-apply-stricter-regulation-for-crypto