BANGKOK: Thailand plans to introduce new guidelines to curb people’ cryptocurrency buying and selling after a surge in inflows from younger folks sparked concern from regulators.
Retail traders will most likely be required to point out their earnings or belongings earlier than opening buying and selling accounts with the nation’s six licensed cryptocurrency exchanges, stated Ruenvadee Suwanmongkol, the secretary-general of the Securities and Alternate Fee (SEC).
Anybody who isn’t allowed to commerce crypto by way of their very own accounts can make investments by means of licensed fund managers or monetary advisers, she stated, declining to elaborate.
“It’s a giant concern as most crypto traders on home exchanges are very younger, resembling college students and youngsters, ” Ruenvadee stated in an interview.
“We realise these folks love innovation and know-how, however investments in these belongings have huge danger.”
Thai authorities are becoming a member of different international locations’ regulators in warning about cryptocurrencies, at the same time as value rallies draw retail traders trying to find increased returns amid document low rates of interest.
Bitcoin, the most important token, has added greater than US$450bil of worth in 2021 and reached US$1 trillion in market capitalisation for the primary time final week.
The regulator will reveal new proposed guidelines on cryptocurrency buying and selling this week earlier than holding a public listening to in early March, stated Ruenvadee. Officers will consider suggestions and ideas from crypto trade operators, brokerages and different associated events earlier than finalising the restrictions, she stated.
The brand new guidelines may require particular person traders to own some information of crypto markets earlier than being allowed to open accounts to commerce them, stated Ruenvadee.
Buying and selling of cryptocurrencies on the nation’s licensed bourses greater than tripled in January from the earlier month to 65 billion baht (US$2.17bil), in accordance with SEC knowledge. Greater than 90% of buying and selling got here from Thai residents, it stated.
South-East Asia’s second-biggest economic system will most likely see its first preliminary coin providing by an area firm within the first half, stated Ruenvadee.
The brand new token might be backed by rental income of properties, she stated, with out giving extra particulars. — Bloomberg
