Thailand Regulator Withdraws Proposal of Harsh Crypto Investment Rules
- The draft proposed a crypto investors’ minimum annual income to be 1 million baht.
Thailand’s Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) has scrapped its new crypto regulations draft after it received massive backlash from the local community for setting a high bar for investors.
According to a Bangkok Post report, the proposal wanted the crypto investor’s minimum annual income to be 1 million baht (around $33,000), which is too high compared to Thailand’s per capita GDP of around $7,800, as per World Bank data.
The draft rules proposed a mandatory income verification of all Thai citizens willing to invest in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, which received public backlash within hours of being published.
However, the regulator is now taking a safe stand saying the proposed criteria were only to gauge public opinion, a standard practice followed by the SEC while drafting regulatory frameworks.
“I proposed the criteria that many considered too tough to prompt people to express their opinions on the matter and did not intend to say these are the exact qualifications that will be implemented,” said Ruenvadee Suwanmongkol, Secretary-General of the SEC.
Moreover, she explained that the draft was misread by the investors as 1 million baht was clearly not the minimum annual income bar.
Investors Are Not Well-Informed
Thailand is among the emerging countries which are witnessing massive retail interest in cryptocurrencies, and the ongoing market rally fueled this demand further. However, the SEC is arguing that most of these new investors are not well-informed about high-risk investments.
“If the SEC just stands by and does nothing, it would be totally our responsibility if investors lose on cryptocurrency,” Suwanmongkol added.
The Thai regulator is now talking with local exchange operators to understand the investors’ sentiments and will conduct multiple Facebook live hearings this month to clarify the regulations.
Thailand’s Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) has scrapped its new crypto regulations draft after it received massive backlash from the local community for setting a high bar for investors.
According to a Bangkok Post report, the proposal wanted the crypto investor’s minimum annual income to be 1 million baht (around $33,000), which is too high compared to Thailand’s per capita GDP of around $7,800, as per World Bank data.
The draft rules proposed a mandatory income verification of all Thai citizens willing to invest in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, which received public backlash within hours of being published.
However, the regulator is now taking a safe stand saying the proposed criteria were only to gauge public opinion, a standard practice followed by the SEC while drafting regulatory frameworks.
“I proposed the criteria that many considered too tough to prompt people to express their opinions on the matter and did not intend to say these are the exact qualifications that will be implemented,” said Ruenvadee Suwanmongkol, Secretary-General of the SEC.
Moreover, she explained that the draft was misread by the investors as 1 million baht was clearly not the minimum annual income bar.
Investors Are Not Well-Informed
Thailand is among the emerging countries which are witnessing massive retail interest in cryptocurrencies, and the ongoing market rally fueled this demand further. However, the SEC is arguing that most of these new investors are not well-informed about high-risk investments.
“If the SEC just stands by and does nothing, it would be totally our responsibility if investors lose on cryptocurrency,” Suwanmongkol added.
The Thai regulator is now talking with local exchange operators to understand the investors’ sentiments and will conduct multiple Facebook live hearings this month to clarify the regulations.