Thailand currently claims to be one of the most regulated cryptocurrency trading markets in the world, as stock exchanges must comply with strict regulatory standards. For example, at the beginning of the year, the country’s largest cryptocurrency exchange, Bitkub, was shut down by regulators after the trading platform faced a number of long-term service disruptions.
Despite these seemingly strict conditions, the country’s cryptocurrency market continued to flourish. However, the turning point came recently when the Securities and Exchange Commission of Thailand issued a statement that it plans to introduce an annual minimum return of 1 million baht (about $ 33,000) to invest in the country’s cryptocurrency.
The decision was immediately met by the local investor community – as people with low and middle incomes are likely to be excluded from the cryptocurrency market – so badly that the regulator was forced to clarify its stated position within a few days of the decision. Advertising.
In this regard, the Securities and Exchange Commission indicated that the previous draft document was only a way to measure investor sentiment, as stated by Ruvenwadi Swan Mongkol, Secretary General of the Thai Securities and Exchange Commission: their views on this matter did not mean that this is the exact requirements to be implemented. …
Pinpraaj Chakkaphak, CEO of local cryptocurrency exchange ERX, shared his views on the matter and told Cointelegraph that the original intention of the SEC was not harmful, but tried to create a mechanism that could help protect investors from unnecessary market risk and added:
“We understand the good intentions of the SEC. However, many stakeholders in the digital asset market and the majority of the population disagree with the plan. From an ERX perspective, this defense mechanism should not focus on minimum income; it should rather take the form of improved operator information and investor education. ”
Regulation should not hinder market growth
To better understand the situation, Cointelegraph spoke with Konstantin Anisimov, CEO of CEX.IO, one of the most widely used cryptocurrency exchanges in Thailand. In his view, by taking a position that potentially prevents low-income families from reaching a potentially profitable investment class, the SEC is moving toward the foundation of a free market economy and freedom of choice.
On the other hand, however, he acknowledged that if the majority of the low-income population lacks basic financial education and understands the risks of such investments, the SEC’s approach may be the only way to protect the best in society. … Interests. Anisimov added:
“There are several approaches you can take, and the minimum income is just one of them. I am confident that the Thai Small Business Council will take into account the views received from the investment community and act in the best interests of the people. ”
In addition, in a joint statement with Cointelegraph, Akalarp Yimvilai, CEO of the local cryptocurrency trading platform Zipmex, indicated that he truly believes the proposed bill comes from goodwill and works to protect investors by reducing unnecessary risk. …
He stressed that the Thai cryptocurrency market is still in its infancy, and that the rules of space did not appear until about three years ago. As a result, the SEC continues to try to formulate a legal framework for this asset class that can protect investors from future risks. However, Iimvilay continued:
The proposed project is about protection, but it is also important to see that it offers a higher wall that limits the possibility of access to digital assets for many in this country. I think the key here is to work side by side with the SEC to keep this wall stable and high. ”
Finally, he believes that if the current project is met, it is likely to result in a significant increase in fraud, which could push investors into an unregulated market where they can reach unknown territory. Furthermore, it can also lead to a large outflow of much-needed capital from Thailand, and in the long run damage the country’s development and economy.
The Thai cryptocurrency market flourished
Thailand’s digital asset industry has grown significantly in recent months. According to the country’s Securities and Exchange Commission, the number of cryptocurrency trading accounts in the province increased from 160,000 at the end of 2020 to 470,000 on February 1, Hummer.
In addition, Chakawak noted that trading volumes for cryptocurrencies in November 2020 amounted to 18.44 billion baht, up from 100.90 billion baht in February 2021, and showed a staggering growth of 447.18% in just three months. He went to prof.