Thailand currently claims to be one of the most regulated cryptocurrency markets in the world, with exchanges meeting stringent regulatory standards. For example, at the start of the year, the country’s largest cryptocurrency exchange, Bitkub, was shut down by regulators after the trading platform faced a series of prolonged service disruptions.
Despite these seemingly strict terms, the country’s cryptocurrency market continues to thrive. However, the turning point came recently when the Securities and Exchange Commission of Thailand issued a statement that it plans to accept an annual return of at least 1 million baht (about $ 33,000) for cryptocurrency investments in the country.
This decision was immediately welcomed by the local investor community as it would likely exclude low- and middle-income people from the cryptocurrency market to the point that the regulator would have to clarify its position within days of the announcement.
In this regard, the Securities and Exchange Commission noted that the previous draft document was just a way to gauge investor sentiment, while Rowinwadi Swan Mongkol, Secretary-General of the Thai Securities Commission, said: “I have proposed criteria that many have considered to be too strict to make people express their views. Opinions on the issue and was not intended to say that these are the exact requirements that must be met.
Pinpraaj Chakkaphak, CEO of local cryptocurrency exchange ERX, told Cointelegraph that the original goal of the SEC was not harmful, but rather to create a mechanism that could help protect investors from unexplained market risks, adding:
“We understand the good intentions of the SEC. However, many stakeholders in the digital asset market and the majority of the public disagree with the plan. From an ERX perspective, this guarantee should not focus on a minimal income; rather, it should It comes in the form of improved information from operator and investor training. ”
Regulation should not hinder market growth
To better understand the situation, Cointelegraph spoke with Konstantin Anisimov, CEO of CEX.IO, one of the most widely used cryptocurrency exchanges in Thailand. By adopting a stance that would potentially prevent low-income families from accessing a potentially profitable investment class, the SEC has violated the fundamental principles of a free market economy and freedom of choice, she said.
On the one hand, he acknowledged that if the majority of the low-income population does not have a basic economic education and an understanding of the risks of such investments, then the SEC approach may be the only way to protect the public interest. Anisimov added:
“There are several paths you can take, and the minimum income is just one of them. I am confident that the Securities and Exchange Commission of Thailand will take the views of the investment community and act in the best interest of the public.”
In a statement released to Cointelegraph, Akalarp Yimvilai, CEO of local cryptocurrency trading platform Zipmex, indicated that he truly believes that the proposed bill is well-intentioned and works to protect investors while minimizing unnecessary risks. …
He noted that the Thai cryptocurrency market is still in its infancy and that the rules related to space did not appear until about three years ago. As a result, the SEC is still trying to create a legal framework for this asset class that can protect investors from future risks. However, Imville continued:
The proposed project revolves around protection, but it is important to see that a higher wall is being proposed that limits the ability of many in this country to access digital assets. I think the key here is to work side by side with the SEC to ensure the stability and height of this wall. ”
Finally, he believes that if the current project is implemented, it will likely lead to a significant increase in the number of scams and possibly lead investors to an unregulated market where they can enter an unknown territory. Not only that, but it could also lead to a long-awaited influx of capital from Thailand, which could lead to long-term damage to the country’s development and economy.