The Stock Exchange of Thailand (SET), announced today that it is planning to introduce a trading platform for asset-backed digital tokens in the second half of 2021. The exchange completely rejected the possibility of the inclusion of cryptocurrencies because of their risky nature and potential involvement in money laundering activities.
According to a report by the Bangkok Post, the SET mentioned that cryptocurrencies do not meet the criteria for listing on its trading platform and the inclusion will harm the SET’s image as a high trust exchange.
The exchange has outlined three key requirements for tokens to get listed on its platform which includes the requirement to have an underlying asset that investors can analyze on value. Secondly, the token must support the society and environment. Thirdly, it must contribute to the economic activities in the region.
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Commenting on the matter, Kitti Suthiatthasil, Executive Vice-President at SET, said: “Cryptocurrencies like bitcoin are currently used in some countries which are experiencing high inflation and currency fluctuations such as Zimbabwe and Venezuela as an equivalent of fiat money. Another reason why the SET is not interested in cryptocurrencies despite their recent surges is that they can easily be used for money laundering. If people are caught laundering money on the SET digital asset platform using cryptocurrencies, it could harm the SET’s reputation and overall investor confidence.”
Cryptocurrencies and Asia
According to a report by Messari research, Asia accounts for more than 40% of the market cap of the top 20 cryptocurrencies. Asia has an important role to play in the growth of the crypto market as more than 50% of crypto mining companies are based in China. The adoption of digital assets in countries like Japan, Korea and Singapore has increased in recent years. The latest announcement by Thailand’s stock exchange shows that despite its criticism against cryptocurrencies like Bitcoin and Ethereum, the country is planning to provide a trading platform for regulated digital assets.
“We just buy the future and hopefully the digital asset marketplace will grow as expected,” Suthiatthasil added.