In Crypto Law Overhaul, Thai Central to receive more powers
Thailand’s central bank has planned to revise its crypto laws to give the central bank more power. Reports have suggested that the new changes to the regulation will include the central bank as part of it.
Finance Minister Arkhom Termpittayapaisith mentioned in an interview about the planned changes. In addition, the government will also include strict rules for the cryptocurrency platforms that also offer other tokens.
The US Securities and Exchange Commission is currently the only regulatory agency mandated alone to oversee the industry under rules passed in 2018, and now the agency has been asked to take the lead on the overhaul.
The move was in anticipation of the tightening of rules as Thailand’s authorities were criticized for not being quick enough when crypto exchange Zipmex suspended its withdrawals.
Stricter crypto laws to ensure investor protection
Thailand’s Finance Minister has also mentioned in the interview that these increased regulations are not intended to dampen the industry’s growth. Thailand also does not want to limit innovations and technology in the industry. These regulations are aimed at ensuring investors’ greater protection.
Recently, the crypto exchange Zipmex has lifted the freeze on transactions and has also applied for a moratorium in Singapore for protection from creditors against possible lawsuits. This should help Zipmex find some time to raise money.
Other factors were also responsible for the decision to bring the Bank of Thailand on board because of the downturn that saw traders lose close to $2 trillion. Crypto borrowers were also significantly affected due to the crypto winter.
Big names like Celsius, Three Arrows Capital and Zipmex have left many investors in a fix with their funds. Reports have even suggested that the number of active trading accounts has fallen from 700,000 to 230,000 in half a year.
Thailand has adopted crypto consistently despite stricter regulation
Thailand has experienced problems with crypto exchanges in the past. Thailand has continued to be quick to issue licenses to stock exchanges. Reportedly, the country has now approved four more crypto operators last week. Currently, with the new approval, the total number of licenses for digital asset operators has reached 21. This figure also includes three fund managers, nine exchanges and nine brokers.
The need for the updated regulation also came in because the central bank currently does not comply with the regulations except to notify that crypto is not a legal method of payment for goods and services.
This framework lacks clarity and is too sufficient to regulate the industry, so the industry needs an overhaul. Many digital asset firms have also tried to fake artificial trading volumes, the SEC fined Bitkub for doing the same. This makes it an absolute necessity for Thailand’s central bank to increase investor protection through strict regulations.
