The Securities and Exchange Commission of Thailand has started public consultations on proposed qualification rules for investing in cryptocurrencies.
According to an official announcement released Thursday, SEC in Thailand is currently seeking public comment on the proposed qualifications of crypto investors, including specific income and trade experience requirements.
As part of the initiative, the Thai Securities Commission plans to host a live hearing on its Facebook page on March 24. The public consultations will continue until March 27.
According to the proposed advisory document, the regulator plans to impose strict restrictions on trading cryptocurrencies in Thailand, including requiring local crypto investors to have net assets of at least 10 million baht ($ 332,500) and have an annual income of 1 million baht. ($ 33,250). According to the proposed rules, the investor’s assets will not include the value of real estate used for permanent residence.
As part of the new investor qualification, the Securities and Exchange Commission also wants to require traders to have investment experience and education. Local traders must have at least two years of experience in trading securities or derivatives or obtaining a special certificate from accredited institutions.
The Securities and Exchange Commission (SEC) originally announced its plans for crypto investor requirements earlier this month. By introducing the new rules, the government is committed to providing adequate measures to protect investors as domestic interest in investments in cryptocurrencies grows.
“Cryptocurrency is an economic innovation that is subject to high volatility. Consequently, investing in this digital asset requires knowledge and understanding, as well as a risk profile that is not affected by investment losses,” says the new message. Rowenwady Swan Mongkol, Secretary General of the Securities and Exchange Commission, told Bloomberg that investors who are not eligible to trade will still be able to invest through licensed fund managers or financial advisors.
This is a serious problem because most of the investors of cryptocurrencies on local exchanges are young people, such as students and teenagers. We know people love innovation and technology, but investing in these assets carries huge risks, ”said Suwanmongkol.