Thai SEC Begins Public Hearing On Proposed Cryptocurrency Regulations
The Securities and Exchange Commission of Thailand has requested a public dialogue on new cryptocurrency regulations. This, according to the regulatory body, is part of its plans to have an inclusive digital-asset framework.
Public Discourse part of Proposed Regulatory Framework
The Thai SEC revealed this proposal in a press release on February 25 on its website. The financial regulator also stated that a series of public hearings will be conducted until March 27, 2021, and the regulatory body will hold a live talk about the hearing via its Facebook Page on March 24, 2021.
According to the report, the public discourse will center on aspects of the SEC’s new regulations. The regulator is seeking public consultation on cryptocurrency investors’ proposed qualifications and the proposed requirement for a knowledge test before services on digital asset investment can be given. Discussions held with public stakeholders will form part of the criteria for laying out appropriate regulations.
With this latest proposal, crypto exchanges will be required to perform tests to determine investors’ knowledge of cryptocurrencies. Once the test is completed, crypto exchanges and digital-asset providers will be mandated by law to tailor their services based on the investors’ knowledge.
Growing Concerns about Cryptocurrencies
The SEC’s proposed regulations are part of the growing concerns from the Thai government regarding the dangers of cryptocurrencies.
The SEC has previously warned citizens that cryptocurrency is a financial innovation that comes with risks due to its high volatility. Thailand’s finance minister Arkhom Termpittayapaisith also recently expressed concerns about the growth of cryptocurrency activities in the Asian nation. He warned about the risks posed by cryptocurrencies and the lack of knowledge from investors.
In January, the SEC directed the largest crypto exchange in the country, Bitkub to shut down. This order came after the exchange suffered technical problems due to a surge in its daily trading volumes. Thailand authorities oversee cryptocurrency exchanges’ activities, with the crypto trading regulated by the SEC and the Ministry of Finance.
The country’s central bank, the Bank of Thailand (BOT), is also developing its central bank digital currency (CBDC) in response to cryptocurrencies’ growing popularity. It is expected that initial tests could begin in the second quarter of 2021.