Thai Prime Minister cautions Thai citizens who have recently been investing in cryptocurrencies.
Forty-seven percent of crypto traders are under the age of 30 in Thailand. There are 1.49 million digital asset trading accounts, and the average trading volume is $198M, according to the SEC in Thailand. Many crypto investment platforms in Thailand operate illegally, and the Prime Minister has warned the public to be watchful when using these platforms, as legal recourse is not possible, should something go wrong. These platforms often use advertising hype to attract traders. While the Prime Minister is glad that people are investing, he would like citizens to consider that they could lose all their investments and must consider investments carefully, especially when opening trading accounts for children. He advises that children’s trading accounts be under parental supervision.
Thai SEC on the prowl
Anti-money laundering policies were appended to well-established cryptocurrency laws and regulations in 2019. In September 2021, new regulations came into play, initiated by the Anti-Money Laundering Office, which requires all who desire to set up a new account to do so in person with their investigation.
The SEC in Thailand has been on the prowl in the last year; it halted all Huobi services in Thailand in Sep 2021 and considered revoking their license, and they also filed a complaint against Binance for operating without a license. In June 2021, they banned exchanges from dealing in meme- or joke-based tokens and fan-based coins, as well as tokens issued by an exchange, and non-fungible tokens, believing them to have no substance. The tokens were set to be delisted, should exchanges not comply within 30 days of the announcement.
Thailand a front runner in the Asian CBDC race
Thailand recently banned the use of the THT stable coin, because of fear that the adoption of stable coin would adversely affect people’s use of, and confidence in, the Baht, Thailand’s legal tender. Stable coins allow holders to escape the volatility associated with other cryptocurrencies, while still holding a digital asset, which is pegged to the national currency. Thailand launched a digital Baht trial in 2019, and is a leader amongst Asian countries in the race to create a central bank digital currency.
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