The financial authorities in Thailand are about to crack down on cryptocurrency. The event comes after a turbulent year in which Asians experienced major setbacks.
The Thai Securities and Exchange Commission is preparing stricter rules for crypto assets, According to Dec. 13 Bangkok Post story. But the stricter rules make it more difficult for ordinary investors.
In addition, Thai investors using the Zipmex platform were negatively affected by the bankruptcy of Celsius Network. When FTX slumped in early November, it was Asian private investors who suffered the most.
Follow the steps of other countries
As examples of what it aims to emulate, the agency cited recent laws from Singapore, Japan and the United Kingdom. However, Singapore does not want to discourage investment or innovation, and the city-state continues to act as a hub in the region for cryptocurrency.
A task force is being set up by the Thai SEC to investigate the bitcoin sector. Representatives from relevant government and private institutions will also attend. They will be tasked with coming up with ideas on how to make laws more environmentally friendly.
The SEC wants to crack down on bitcoin marketing and advertising, especially when it comes to celebrities and influencers. After it was discovered that several well-known athletes accepted fees to support FTX, similar measures were taken last month in the United States.
In Thailand, stricter rules restricting cryptocurrency advertising have come into effect, according to an official notice from the country’s Securities Commission. In addition to requiring the addition of clear risk warnings against investing in cryptocurrencies, the new rules prohibit the inclusion of false or exaggerated information about cryptocurrency companies, such as overestimated user numbers.
In Thailand, cryptocurrency trading is still legal and available, but it is unclear how the government will restrict it in the future. The central bank and authorities disagree with claims made regularly by the Thai Ministry of Tourism that the country is a hotspot for the cryptocurrency industry.
Meanwhile, Thailand’s central bank is preparing to develop its own digital currency to follow the lead of China (CBDC).
In addition, the Bank of Thailand is preparing to launch a retail central bank digital currency pilot program before the end of the year. Thailand wants programmable money similar to China’s, which the government can control and monitor.