- Trading irregularities prompt Thai regulators to make stringent rules.
- The passing of laws plummets active crypto-user accounts to 33%.
- The central bank gains the power to regulate the industry, with the Gulf Department of Energy likely to move into crypto.
Following the many trading irregularities and failure of acquisition involving crypto exchanges, Thailand regulators have decided to pass into law several new rules.
On September 1, the Security Exchange Commission (SEC) passed new rules related to crypto advertisements. The new legislation advises companies to refrain from providing misleading information while mandating a warning about the risk involved in investing in crypto.
The passing of the laws by the SEC saw the active crypto accounts drop to 33% from what it was during January. The companies were given a notice period of 30 days to remove ads that are not adhering to the new rules.
According to the Finance Minister of Thailand, Arkhom Termpittayapaisith, the nation’s central bank will be conferred with partial power that the SEC had. The SEC had the sole mandate to regulate the industry under the laws passed in 2018. Nonetheless, the power will be partly given to the central bank with the minister’s statement in an interview.
In 2018 when Thailand implemented laws on digital assets, it became the first country in the region to do so. This move by the SEC triggered many millennials to invest in cryptocurrencies.
However, recently Bitkub Capital Group Holdings Co. and Zipmex Thailand, two crypto exchanges that were issued licenses by the SEC, were accused of allegations and were fined. Notably, Bitkub was accused of insider trading and slapped with a fine of 8.5 million baht ($233,459). Meanwhile, a police complaint was filed against Zipmex and its CEO.
Despite the restrictive rules imposed on exchanges, the Gulf Department of Energy Development, the largest energy producer in Thailand, is requesting the SEC’s approval to operate a crypto exchange and brokerage.