Thailand’s regulators have tightened digital asset rules Trading irregularities and the collapse of a top can lead to trade fraud Acquisition A crypto exchange.
This has affected Thailand’s goal to be the most important digital asset trading center in Southeast Asia.
After Thailand became the first country in the region to adopt digital-asset legislation, cryptocurrencies gained popularity in Thailand. The country’s Securities and Exchange Commission granted six platforms licenses as exchanges to the country, including Zipmex Thailand and Bitkub Capital Group Holdings Co.
However, trust in the crypto market is under scrutiny due to a Bitkub executive’s recent insider trading case. The Bitkub executive was later fined $8 million ($233,459) by SEC. Additionally, a police complaint filed earlier this week against Zipmex’s chief executive officer further raised questions about cryptos.
The global crypto rout added to Thailand’s crypto instability.
Bloomberg claims that the stricter oversight by experts has exacerbated the damage from Thailand. Bitcoin, Ether and Other Tokens, as Well as Meltdowns of Crypto lender Celsius Network Ltd. Broker Voyager Digital Ltd. and Hedge Fund Three Arrows Capital.”
To improve investor protection, the SEC plans to strengthen supervision of digital assets through a working group.
Nares Laopannarai (secretary-general of Thai Digital Asset Association) stated that “most investors and market players feel extremely deflated by negative headlines almost everyday.” “Rising regulatory risk will make it more difficult to restore excitement in the market. This has already been affected by weakening global sentiment.”
Blockchain.News reported that on September 1, the SEC of the country announced tighter advertising rules for cryptocurrency firms, as well.
In an email statement, the SEC informed various crypto-related firms that advertising for digital assets must contain clear and visible warnings regarding the risks associated with investing in cryptocurrencies.
The SEC tightened regulations after discovering that some advertisements did not contain warnings about crypto risk, while other promotions contained only positive information.
Bloomberg reported that active trading accounts in the country fell to 246,000 last August, a third less than January.
SCB X Pcl canceled its plan to buy a majority of Bitkub Online for 18 billion baht last month. According to the financial group, Thailand’s royal family is the major shareholder.
“The collapse of digital-asset prices has wiped out a vast amount of wealth among Thai investors,” said Karin Boonlertvanich, executive vice president at Kasikornbank Pcl. “The realization of bubble-price risk will scare those people for quite some time to come.”
According to the SEC data, there has been a drop in trade in cryptocurrencies on licensed exchanges in Thailand to 64 million baht (a decrease of 20% since December 2020).
Some companies continue to believe in cryptos, however. Companies such as Thailand’s biggest private power producer, Gulf Energy Development Pcl, continue to bet on the growth of the crypto market as their plans for expanding into digital-asset businesses to diversify earnings have doubled down. The company, controlled by Thailand’s second-richest person, Sarath Ratanavadi, is seeking licenses from the SEC to operate a digital asset exchange and brokerage in partnership with Binance Holdings Ltd.
“We are confident about the potential for cryptocurrencies and digital assets as the world moves further and further into blockchain technology and related ecosystems,” Yupapin Wangviwat, Gulf Energy’s chief financial officer, said in an interview last month. “Tokens that have underlying assets will enhance the transformations of most businesses.”