Thailand Securities and Exchange Commission (SEC) has allayed concerns regarding some of the requirements in its crypto proposal draft plan. This was in response to the uproar from crypto stakeholders about certain aspects of the proposed crypto framework.
Thai SEC Responds to Crypto Regulatory Controversy
The crypto proposal draft released in February had suggested that new crypto investors must possess a minimum of 1 million baht annual income, a minimum age limit, and proven trading experience. The proposal had drawn criticism due to the excessively high standards for crypto trading, limiting low and middle-income earners from investing in cryptocurrencies.
However, according to a report from the local news outlet, the Bangkok Post, the Thai SEC is backing its draft plan. According to the regulator, the draft was designed to test public sentiments from industry stakeholders.
This was revealed by the SEC’s secretary-general, Ruenvadee Suwanmongkol, who stated that it was a standard protocol from the regulator.
“I proposed the criteria that many considered too tough to prompt people to express their opinions on the matter and did not intend to say these are the exact qualifications that will be implemented,” she said.
The Facebook live hearing scheduled for March 24 has been brought forward to March 3 as the regulatory body looks to address stakeholders’ growing concerns.
Thailand Seeking to Regulate Cryptocurrencies
Thailand is regarded as one of the crypto-friendly nations, becoming one of the first to acknowledge cryptocurrencies with its Digital Assets Decree in 2018. The rise in bitcoin since the end of 2020 has led to increased awareness of cryptocurrencies in the Asian nation. This has led to a foray of retail investors into the market, causing concerns for regulators.
The volatile nature of cryptocurrencies means that inexperienced investors can quickly lose their money within a short period. This is one of the SEC’s main focuses, which says that most of the new investors in crypto are not well informed and may not be ready to invest in high-risk crypto-assets.
Ruenvadee Suwanmongkol echoed this point when addressing concerns on the proposals.”If the SEC just stands by and does nothing, it would be totally our responsibility if investors lose on cryptocurrency. She added.
The SEC is expected to conclude its three-week-long consultation with industry stakeholders in March as it looks to roll out new regulations for crypto service providers.