Regulators are tightening crypto market rules in Thailand
The Thai SEC has tightened the rules related to the crypto market, while the central bank is given more powers to regulate the market. Meanwhile, the country’s Gulf Energy Development is looking at launching a crypto exchange.
Regulators in Thailand are taking an aggressive stance on the crypto market as the government adopts several new rules. Actions by Thailand’s Securities and Exchange Commission (SEC) have affected trading numbers, as the number of active accounts has fallen to about 33% of what it was at the start of the year.
On September 1, the SEC adopted new rules related to crypto advertising, which state that companies must not present false or misleading information, while imposing a warning that talks about the risks of investing in cryptocurrencies. These advertisements must be amended within 30 days of the publication of the notice.
Thailand’s central bank will also gain more power over the crypto market, and Finance Minister Arkhom Termpittayapaisith says the same in an interview. So far, the Thai SEC has been responsible for regulating the crypto market, but that responsibility will now be partly shared between the two, and the SEC will be responsible for this change.
Despite the more restrictive rules being implemented, there are still exchanges about break-ins in the country. Gulf Energy Development, Thailand’s largest energy producer, aims to invest in blockchain ecosystems and is seeking approval from the SEC to operate an exchange and brokerage business. It wants to build these platforms through a partnership with Binance.
Regulators are cracking down on crypto companies
The market share of most cryptocurrencies in Thailand is dominated by Bitcoin at 11.83%. After Bitcoin are Tether, Ethereum and Gala. Trading volumes on these assets may well decrease as regulation tightens.
A plan by Siam Commercial bank to buy Bitkub has fallen through due to the tightened regulations. The bank, Thailand’s defaulting lender, was set to buy a 51% stake in the exchange.
Meanwhile, the SEC has also fined a Bitkub executive $235,000 for insider trading. In the case of Zipmex, which has filed for bankruptcy protection, the regulator has filed a police complaint.
Crypto conviction still exists in Thailand
Thailand is certainly aiming to impose some control over the market after the root earlier in the year. That hasn’t stopped Gulf Energy Development CEO Sarath Ratanavadi from wanting to invest in the blockchain space. The second richest person in Thailand, Ratanavadi, wants to invest some of his company’s earnings in blockchain companies.
This has led him to want to create a crypto exchange and is in a joint venture with Binance for the purpose. The company has also agreed to invest in Binance Coin and invest in the preferred stock of Binance US.
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