On Tuesday, Bangkok Post, a local news outlet, announced that Thailand’s Securities and Exchange Commission (SEC) is working on strict regulations for digital assets. According to the regulator, investor protection is its major priority.
Hence, tighter rules could affect the development of the crypto sector. Meanwhile, recent events in the crypto space have pushed the securities regulator to sit up.
Two significant events in the crypto industry have affected retail investors in Asia. They include the FTX bankruptcy crisis last month and the Celsius bankruptcy, which affected Thailand investors using Zipmex.
Following the bankruptcy of Celsius, Zipmex had to pause withdrawals on its platform, locking users’ funds. Thailand’s SEC argued that these events reflect the vulnerability in the crypto space.
The regulator also argued that the lack of a proper regulatory framework for crypto allowed such events. While speaking on its upcoming regulations, Thailand’s SEC cited the regulatory framework available in Singapore, Japan, and the United Kingdom.
The agency plans to replicate such a framework in Thailand. However, Singapore’s crypto regulatory framework gives room for innovation.
Besides, the country is among the major crypto hub in the region. Furthermore, the Thai SEC has set up a committee to evaluate the crypto sector.
Also read:This committee comprises representatives from the private sector and relevant government officials. The committee will propose ways policymakers can improve the country’s financial laws to include the crypto sector.
In addition, the watchdog is monitoring and evaluating potential risks that could affect investors.
Thailand’s Retail CBDC Pilot
Although crypto trading is still open in the country, the government might issue some restrictions soon. Interestingly, the Ministry of Tourism has always painted Thailand as a crypto hub. However, the country’s regulators and central bank have other plans.
Earlier in November, the country issued strict crypto regulations, which dashed any hope that the country would soon become a cryptocurrency hub. Meanwhile, Thailand’s central bank wants to launch a CBDC (central bank digital currency) soon, following in the footsteps of China.
According to reports, the Bank of Thailand (BoT) would partner with two banks for a CBDC pilot program. The two banks are the Bank of Ayudhya and Siam Commercial Bank.
Additionally, over 10,000 retail users will participate in the pilot program starting this year. Furthermore, the program will run till the middle of 2023.
The BoT, just like China, is also considering creating a programmable digital currency. The central bank will control such a CBDC, its uses, and those that can use it.
However, the central bank is not interested in decentralized cryptos like BTC and ETH.
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