Thai Regulator Alerts Against Unlicensed Crypto Firms as Cryptocurrency Trading Ramps Up


The Securities and Exchange Commission of Thailand (SEC) advises investors that investments in crypto assets should be closely monitored due to high volatility-related risks, highlighting the need for investors to invest and trade only with market participants governed by the Agency.

Ruenvadee Suwanmongkol, SEC secretary-general, said:

“Cryptocurrencies are traded around the world just like gold. Investors must closely follow regulations as there are many digital exchanges worldwide and there is a risk as we can only regulate players we have authorized.”

In Thailand, the Ministry of Finance and the SEC control the exchange of digital assets and cryptos.

Currently, one digital asset dealer, five digital asset dealers, eight digital asset exchanges, and four initial coin offering portals have been approved by the regulator.

Furthermore, Suwanmongkol stated that, as the regulations dictate, approved digital exchanges must maintain capital reserves.

The organization has taken public legal action against fraudulent cryptocurrency-related instances.

Meanwhile, Jirayut Srupsrisopa, founder and CEO of Bitkub, the leading cryptocurrency exchange in Thailand with a market share of 95 percent, revealed that investor interests in the country had increased significantly. He said that the exchange’s trading volume broke 2 billion Thai baht (US$ 67 million) for the first time within 24 hours after Bitcoin surpassed 1 million baht (US$33,000).

Srupsrisopa further claimed that 20,000 accounts were opened in Bitkub on a single and another 7,000 stores created the previous day over Christmas and New Year festivities, thus pushing total accounts to 600,000. He said that on January 3 of this year, a total of 40,000 new accounts were opened on the exchange.

However, by allocating no more than 10 percent of their assets to digital assets, crypto specialists advise investors with a moderate risk appetite to rebalance their portfolios.

An analyst from Trinity Securities, Nuttachart Mekmasin, said:

“We still recommend investors maintain an alternative investment portion of 10%, 5% for cryptocurrencies, and 5% for gold.”

He advised that in the first half of 2021 when the global economy shows recovery signs in the second half, individuals will assign an excess weight to growth stocks and then relocate to value stocks.

A safe-haven cryptocurrency acting as

A transition direction has been taken by Bitcoin, the world’s leading cryptocurrency. In times of economic crisis, one of the founding goals of Bitcoin and other altcoins was to act as a safe-haven. During today’s global instability, coronavirus pandemic is the real test. Thailand has adopted, and legalized cryptocurrencies, and the Bank of Thailand is currently working on its plans to issue a digital currency to the central bank (CBDC) to allow digital payment services to be more effective.

The use of Bitcoin in the region, meanwhile, has increased rapidly and unexpectedly. As they see Bitcoin as a safe haven, people are rushing to invest in cryptocurrencies (an alternative asset to protect their purchasing power from more dollars injected into the economy). Young people have created the driving creation of cryptocurrency in the country. Millennials (aged 26-40 years) make up 57% of Thailand’s cryptocurrency purchasing customers.


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