Thailand is looking to rethink its current form of crypto regulation in the wake of the FTX fiasco. The plan is to tighten the rules and focus on protecting Thai investors.
Vulnerable market
The Bangkok Post has a report published which shows that the Thai Securities & Exchange Commission (SEC) wants to apply stricter regulations. This to reflect the global market.
Regulators’ concerns were also expressed about recent trends in crypto advertising, in particular the use of so-called ‘fin influencers’ to get their message across. The use of this can cause a lot of misguidance to perhaps unnecessary investment risks. The digital asset industry is therefore considered vulnerable by Thai regulators and therefore needs oversight.
Investor protection
Investor protection was further emphasized by the SEC. A working committee has therefore been set up, with both civil servants and private stakeholders to assess and prepare relevant changes to the already existing regulations.
It is worth noting that this is not the first time that Thailand’s SEC has responded to crypto advertising. In September, it already required market players to issue clear investment warnings to consumers. She also opened a public hearing to ban crypto platforms from offering digital asset custody services. Although this ban on stocking and lending services has not yet been officially passed, it should protect traders and the general public in the country.