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Thailand’s SEC And The Crypto Bear Market

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The Thais have a penchant towards cryptocurrencies. At the peak of the bull market more cryptocurrency trading accounts were being opened in the country than stock brokerage accounts. The growth rate for cryptocurrency trading accounts was 27.6 percent, while the growth rate for stock brokerage accounts was 2.9 percent.

It’s possible that the paucity of other investment options in Thailand contributed to the country’s predilection for cryptocurrency.

The average person cannot afford to own their own home. Ponzi schemes and other forms of financial fraud are rampant in the stock market. In the opinion of many, crypto would have presented an opportunity to amass money that could not have been obtained via the use of conventional vehicles.

However, that was during the market’s bull run. As the market entered the area of bears, the majority of the retail traders who used these accounts would have incurred significant losses. The local exchange Zipmex filed for bankruptcy protection earlier this week, citing exposure to unstable crypto protocols like Babel as the reason for their decision. These cracks are beginning to appear in some of the infrastructure.

The Securities and Exchange Commission of Thailand, which is in charge of market regulation,

made it illegal for approved exchanges to trade tokens that did not have “clear purpose or substance. “DOGE” was gone. It grouped non-traditional currencies into the same category as traditional ones, although it seemed to relax its stance after the local incumbent bank Kasikorn became active in the market.

Stricter regulations for digital assets are reportedly on the way, according to the SEC. The policy is still in the early stages of consideration, but the Secretary-General of the Thai SEC, Ruenvadee Suwanmongkol, said in a recent interview that more monitoring is required: She stated that “our primary emphasis will be to provide greater protection for small investors,” some of whom are putting the majority of their resources into these assets. “Our primary aim will be to provide more protection for small investors,”

Performing checks on all of the digital assets.

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Anusorn Tamajai, a former member of the audit committee of the Bank of Thailand, recently gave an interview to the English channel of Thailand’s public broadcaster and stated that the Securities and Exchange Commission (SEC) urgently needs to check every digital asset exchange to verify whether or not all clients’ assets are kept safe there.

In light of the fact that Zipmex experienced sudden liquidity issues and other exchanges,

such as Vauld, also had to suspend withdrawals, it is possible that if an attempt is made to determine which exchanges have been exposed to crypto contagion, it will be possible to put an immediate stop to the problem.

If the bear market can be navigated successfully by taking problematic infrastructure offline before ordinary investors lose their money, the ecosystem as a whole will be able to recover and become stronger.

It would also be a success for the regulators to take a relatively mild touch, which means that any kind of wholesale retail prohibition as well as bringing digital assets under securities rules are off the table. This distinguishes Thailand from Hong Kong and even Singapore, both of which are developing a greater skepticism toward cryptocurrencies, than does Thailand.

Thailand is not as well-known as Hong Kong or Singapore for the robustness of its regulated financial markets as Thailand is. But if regulators are able to take a firm hand in cutting out problematic exposed infrastructure from the market while at the same time treating cryptocurrency with a light touch, they might demonstrate that there is a way to regulate digital assets and protect retail consumers without resorting to a ban on the practice.
They may be able to prove that it is possible to work with the Crypto sector in building a safer environment for retail traders.

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