The Securities and Exchange Commission(SEC) of Thailand has launched a public consultation on the proposed licensing rules for cryptocurrency investors on Facebook live.
Thai SEC to organize a Facebook live consultation
Thai SEC is now seeking public comment on the proposed qualifications for cryptocurrency investors (including certain income and trading experience requirements), according to an official announcement on Thursday
As part of this plan, the Thai Securities and Exchange Commission plans to hold an on-site hearing on March 24th via its Facebook page. Authorities said the public consultation will continue until March 27.
The regulator plans to impose tough restrictions on cryptocurrency trading in Thailand, including requiring local cryptocurrency investors to have a net worth of at least 10 million baht ($332,500) and an annual income of 1 million baht ($33,250). The investor’s net worth does not include the value of real estate used for permanent residence, according to a proposed consultation document.
Traders to have Investment experience and Training
As part of the new investor qualification, the SEC also hopes that traders will need investment experience and training. Local traders should have at least two years of experience in securities or derivatives trading or receive special certificates from authorized agencies.
The SEC first announced its plans for requirements from cryptocurrency investors earlier this month. By introducing new rules, the agency aims to ensure that appropriate investor protection measures are taken as local interest in crypto investment spurts.
Cryptocurrency is a financial innovation and it is volatile. Investing in this digital asset therefore requires knowledge and understanding and a risk profile that is less sensitive to investment losses. SEC Secretary General Ruenvadee Suwanmongkol told Bloomberg that investors who are not qualified to trade can continue to invest through licensed fund managers or financial advisers.
Suwanmongkol said, ““It’s a big concern as most crypto investors on domestic exchanges are very young, such as students and teenagers. We realize those people love innovations and technology, but investments in these assets have enormous risk.”
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