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Thai Regulators Are Preparing Stricter Rules For Crypto

Crypto trading remains open and accessible in Thailand. Cryptocurrency trading is very popular in Thailand, but the military-backed government has banned its use for payments. Thailand’s tourism ministry has repeatedly touted the country as a crypto hub, but the central bank and regulators have other ideas.

Financial regulators in Thailand are about to toughen the rules on crypto following a tumultuous year in which Asians suffered huge losses. The Bangkok Post reported that the Securities and Exchange Commission of Thailand is preparing stricter rules for cryptoassets.

Celsius Network’s bankruptcy had a knock-on effect on Thai investors using the Zipmex platform. Asian retail investors were also hit hardest when FTX collapsed in early November. The rules, which are planned to be put into practice, aim to “protect the investor”. However, it is also known that stricter rules can often make things more difficult for retail investors.

New regulations in the UK, Japan and Singapore can be given as examples of what the Thai SEC would like to do. But as Singapore remains the region’s crypto hub, regulators don’t want to stifle innovation or investment.

Thailand SEC is establishing a working committee to study the crypto industry. The committee will include representatives of relevant government agencies and private sector. This committee will propose ways to improve the laws on the cryptocurrency market. Thai SEC works on crypto advertising and product promotions, especially those using celebrities and influencers. There was similar pressure this month in the US as several high-profile athletes were paid to promote FTX.

Thailand’s central bank, on the other hand, is keen to follow in China’s footsteps by launching its central bank digital currency (CBDC). Also, the Bank of Thailand is preparing to launch a retail CBDC pilot before the end of the year. Just like China, Thailand wants a programmable currency that the government can monitor and control.

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