Financial regulators in Bangkok are planning to introduce stringent laws on digital assets aimed at ‘‘investor protection,’’ according to a statement sent to a local media publication. The Thai Securities and Exchange Commission has justified the steps following the collapse of FTX and Celsius – which affected investors in the region.
Such volatility, according to the agency, ‘‘reflects the vulnerability of the digital asset industry and the lack of proper oversight.’’ SEC’s Fintech department has vowed to take a more proactive approach to protect investors in several ways.
First, Thailand’s SEC is creating a working committee comprising government authorities and private sector players to propose how to amend the current laws and regulations according to the changing market trends.
Thai SEC Plans To Curb Digital Assets Advertisements
In addition, the commission is also following the steps of its US counterparts in restricting crypto advertisements by celebrities and influencers. SEC statement said, ‘‘several digital asset service providers have spent money on advertising by hiring celebrities to lure investors, without disclosing information required by the rules.’’ It noted that ‘‘all these events reflect the vulnerability of the digital asset industry and the lack of proper oversight.’’
Thai authorities are also exploring using a distributed ledger technology (DTL) to boost its oversight role – a step taken by countries like Singapore, the UK, and Japan. Other interest areas include the risks involved in protecting investors’ assets, restricting the conflict of interest, and enhancing cybersecurity.
Currently, Thailand allows for the trading of cryptos but restricts its use in payments. The Southeastern country is pushing for a central bank digital currency (CBDC) – with a retail pilot program set to launch this month.
