In January, the trading on the nation’s licensed exchanges tripled from the previous month. With very young investors involved, students and teenagers, regulators will be revealing new proposed rules this week.
Thailand is planning to introduce new rules to curb cryptocurrency trading by individuals. The move is made in response to a surge in inflows from young investors, which is concerning the regulators. Ruenvadee Suwanmongkol, the secretary-general of the Securities & Exchange Commission, in an interview on Friday, said,
- “It’s a big concern as most crypto investors on domestic exchanges are very young, such as students and teenagers.”
- “We realize those people love innovations and technology, but investments in these assets have enormous risk.”
The regulators are now planning to have retail investors show their income or assets before being allowed to open trading accounts with the nation’s six licensed cryptocurrency exchanges, said Suwanmongkol.
She added that those who aren’t allowed to trade cryptocurrencies through their own accounts could invest through financial managers or licensed fund managers.
As per these new rules, individual investors may even be required to have some knowledge of crypto markets before they are allowed to open accounts to trade digital currencies.
In the month of January, crypto trading on the licensed bourses of Southeast Asia’s second-biggest economy tripled from the previous month to 56 billion baht ($2.17 billion), revealed SEC data. Over 90% of this trading comes from Thai citizens.
These new proposed rules on cryptocurrency trading will be disclosed by the regulators this week before holding a public hearing in early March, said Ruenvadee. However, before finalizing the limitations, officials will be taking suggestions and recommendations from crypto exchange operators, brokerages, and other related parties, she added.
The nation may soon see its first initial coin offering as well. The new token to be offered by a local company in the first half will be backed by the rental revenue of properties.