According to reports, Thailand is getting ready to alter its law on digital assets to strengthen regulation of the cryptocurrency industry and give the Thai central bank the authority to do so. The Thai finance minister stated that the central bank “now has no room to enter into the regulatory framework except for notifying that cryptos are not a legal means of payment for goods and services.”
The central bank would “be part of it,” according to Thai Finance Minister Arkhom Termpittayapaisith when the country’s crypto rules are modified. The Thai Securities and Exchange Commission (SEC), he continued, has been urged to take the lead on the regulatory reform. As per the 2018 regulations in effect, the securities watchdog’s main responsibility is to oversee the cryptocurrency market.
The country’s authorised cryptocurrency and digital token exchange, Zipmex (Thailand) Ltd., stopped processing withdrawals, triggering the decision to amend the laws governing cryptocurrencies. Recently, Zipmex permitted the withdrawal of some coins, however, the business has applied for a moratorium in Singapore.
The Thai government is awaiting this decision, noting that the current legislative framework for digital assets “is not clear enough to regulate the industry.” The official emphasised that, rather than stifling innovation or technology, the goal of stronger crypto rules is to offer investors more protection.
The Thai finance minister then made a comparison between cryptocurrency exchanges and conventional finance methods. A person needs to have the documentation necessary to show their ownership to the stock exchange. He said that in the digital era, all you have is the agreement you include at the bottom, which nobody reads.
“We are trying to protect investors as well as keeping the players in the industry in the fair terms.”
Plans to update the present crypto legislation were announced by SEC Secretary-General Ruenvadee Suwanmongkol in July. She described how the plans called for more stringent management and licencing requirements for cryptocurrency holders.
The high volatility of digital asset markets, the Secretary-General stated at the same time, has made obvious the urgent need for better oversight. Increased protection for small investors, some of whom are investing the majority of their money in these assets, will be their primary concern.