February 16, 2021 | AtoZ Markets – The Securities and Exchange Commission (SEC) of Thailand will hold a public hearing this month to determine the requirements for retail investors opening new accounts to trade cryptocurrency.
Thailand’s SEC Concern About Safety of New Crypto Traders
According to a report by the Bangkok Post on Sunday, the regulator is concerned about the safety of investors amid the recent skyrocketing cryptocurrency price and the resulting flood of registrations on local exchanges.
As a result, the agency plans to investigate possible qualification parameters that will determine whether new cryptocurrency investors have sufficient experience and financial resources to bear the risks associated with cryptocurrency trading and price volatility. SEC Secretary General of Thailand Ruenvadee Suwanmongkol said:
“We need to establish eligibility criteria — age, trading experience, and income or wealth — to limit risk.”
He added that such measures are already in place for high yield bonds, which are only available to certain types of investors. According to the regulator, during the first week of February, 124,000 new investors registered on cryptocurrency exchanges, bringing the monthly influx of new investors to 594,000 on February 8.
The decision to schedule a hearing came after the country’s finance minister, Arkhom Termpittayapaisith, asked Thailand’s SEC to monitor local cryptocurrency exchanges to protect new traders.
Recall that in November, the SEC of Thailand announced changes in the rules of net capital requirements for brokerage companies and firms conducting transactions with securities, including in the digital assets sector.
Think we missed something? Let us know in the comment section below.