Following the recent collapse of once leading crypto exchange FTX, financial regulators and authorities across the world are sharpening scrutiny over the crypto market. Recently Thailand’s regulator reported to tighten rules for crypto companies operating within the region.
According to the new media outlet, the Thai Securities and Exchange Commission is looking to prepare to bring stricter rules for cryptocurrencies and related firms.
Although the regulator considers tightening or rules intended for investor protection seeks to keep to avail safeguard, it ends up complicating things for retail investors. Fall of Bahamian crypto exchange resulted in the loss of a significant number of investors and users. The Thai SEC cited it as an event that exposed the crypto industry’s vulnerability.
Many regulators across countries like Japan, Singapore and the United Kingdom have chosen the same path and the Thai regulator followed the same. While the country known to be the crypto hub within the Asian region, Singapore, anticipates continued crypto innovation and investment.
In addition, the Southeast Asian country’s regulator is working towards constituting a committee specifically to study the crypto industry. It will also consist of relevant government agencies along with the representatives from the private sector. Their responsibilities would be to suggest ways to make improvement in laws intending to adapt to the continuously changing environment.
The SEC wants to crack down on cryptocurrency advertising and product marketing, especially those that make use of influencers and famous people. As some well-known athletes were paid to promote FTX this month, a similar crackdown took place in the US.
The regulatory body has promised to make regulations better while also keeping an eye out for any new potential concerns. Although Thailand’s military-backed government has outlawed cryptocurrency use for payments, cryptocurrency trading is nevertheless highly common there.
Although Thailand’s government has not yet imposed any restrictions on cryptocurrency trading, it is still open and accessible there.
The central bank and authorities disagree with the tourist ministry’s frequent claims that Thailand is a hotspot for the cryptocurrency industry. It was claimed in September that Thailand’s hopes of becoming a centre for cryptocurrency were thwarted by more onerous laws.
Thailand’s central bank has launched its own digital currency in an effort to emulate China’s example (CBDC).
A retail CBDC pilot will also be introduced by the Bank of Thailand before the year is through. Thailand shares China’s desire for a programmable money that the government can oversee and regulate.
Decentralized digital assets like Bitcoin and Ethereum are not as popular, though.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/14/thai-sec-calls-for-stringent-crypto-regulations/