Thailand’s crypto regulation is being scrutinized as the government plans changes to digital asset rules.
According to the regulators of the country, action is needed to take place after a cryptocurrency selloff left retail investors with huge losses and toppled many companies.
Existing digital-asset regulations in Thailand were introduced in 2018; however, they require amendment from the Securities & Exchange Commission (SEC), said Secretary-General Ruenvadee Suwanmongkol.
Suwanmongkol stated that the amendment proposal would include stricter qualifications to manage and license crypto custodians. The specific details of the amendment proposal are not yet available.
“The extreme volatility of digital-asset prices has spurred the urgent need for improved supervision,” Ruenvadee said in an interview. “Our main focus will be to provide more protection for small investors, some of whom are putting most of their savings into these assets.”
The regulatory body was motivated to take action after Zipmex (Thailand) Ltd., one of the country’s licensed cryptocurrency exchanges, and its regional parent halted withdrawals this week, according to Bloomberg.
The company is in danger liquidity Similar to the bankruptcy of Three Arrows Capital and Celsius Network Ltd., crunch
According to Bloomberg, Chief Executive Officer Akalarp Yimwilai said Wednesday that Zipmex (Thailand) is talking with potential investors to raise funds for a “bailout.” On its Facebook page on Thursday, the company announced that it has $48 million of exposure to Babel and $5 million with Celsius.
Zipmex Thailand’s woes are an individual case stemming from problems at a related business, Ruenvadee said.
Another crypto woe that has led to the tightening of regulations is a case that involved “artificial trading volume” by Thailand’s largest crypto exchange, Bitkub Online Co., and its CEO Sakolkorn Sakavee, who was later fined.
Bitkub asserts that it continues to operate normally and allows withdrawals as well as deposits for all assets covered by its policies.
According to Thai SEC data, trading of cryptocurrencies in June on Thailand’s licensed exchanges fell to the lowest since January 2021 as it slumped to 58 billion baht ($1.6 billion).
Also, the data showed that The total number of trading accounts was down to 305,000 in June from 556,000 in May.
Thailand’s crypto regulation The crypto industry is just as volatile.
A report from Reuters Thailand’s market regulator had announced that the use of digit assets to pay for goods and services would be banned from April 1.
According to Blockchain.News, the new rule was a result of earlier discussions between the Securities and Exchange Commission and the Bank of Thailand. The SEC said the debate stated the need to regulate such activity by digital asset business operators as it could undermine and impact Thailand’s financial stability and the overall economy.
In addition, the SEC stated that all businesses offering crypto services must comply within 30 calendar days.