The Crypto Bear Market And Thailand’s SEC

People from Thailand have a preference towards cryptocurrencies. More bitcoin trading accounts were being opened in the nation than stock brokerage accounts at the height of the bull market. While stock brokerage accounts grew at a rate of 2.9 percent, cryptocurrency trading accounts grew at a rate of 27.6 percent.

It’s probable that Thailand’s preference for cryptocurrencies was influenced by the lack of alternative investing opportunities there.

The typical person cannot afford to buy a house. In the stock market, Ponzi schemes and other types of financial fraud are commonplace. Many people believe that using cryptocurrencies would have given them the chance to accumulate money in ways that weren’t possible using traditional methods.

But it was back when the market was in a bull market. Most retail traders who used these accounts would have suffered large losses as the market moved into the bear zone. This week, the local exchange Zipmex applied for bankruptcy protection, claiming exposure to risky cryptographic protocols like Babel as justification. Some of the infrastructure is starting to show these fissures.

Market regulation is the responsibility of the Securities and Exchange Commission of Thailand.

prohibited the trading of tokens without a “clear purpose or substance” on authorized exchanges. “DOGE” vanished. It categorized unconventional currencies in the same category as conventional ones, though it appeared to soften its position once the incumbent bank in the area, Kasikorn, started to participate in the market.

According to the SEC, stricter restrictions for digital assets are soon to come. More surveillance is necessary, according to Ruenvadee Suwanmongkol, Secretary-General of the Thai Securities and Exchange Commission, who recently spoke in an interview. “Our primary goal will be to give stronger security for small investors,” she said, noting that some of these investors are investing the entirety of their resources in these assets. “More security for small investors will be our main goal,”

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checking all of the digital resources.

In a recent interview with Thailand’s public broadcaster’s English channel, Anusorn Tamajai, a former member of the Bank of Thailand’s audit committee, said that the Securities and Exchange Commission (SEC) urgently needs to inspect every exchange for digital assets to ensure that all clients’ assets are kept safe there.

Given that Zipmex had unforeseen liquidity problems and rival exchanges,

If an effort is made to identify which exchanges have been exposed to crypto contagion, it could be able to put an end to the issue right away. Vauld, for example, had to suspend withdrawals.

The ecosystem will be able to recover and become stronger if the bear market can be properly managed by bringing problematic infrastructure offline before average investors lose their money.

Success would also come from the regulators using a relatively light hand, ruling out any form of wholesale retail prohibition as well as subjecting digital assets to securities laws. This sets Thailand apart from Hong Kong and even Singapore, both of which are growing more dubious of cryptocurrencies than Thailand.

Thailand’s resilience of its regulated financial markets is not as well known as Hong Kong or Singapore. Regulators might show that it is possible to control digital assets and safeguard retail consumers without resorting to a ban on the practice if they are able to take a tough stance in eliminating dangerous exposed infrastructure from the market while also treating cryptocurrencies lightly.
They might be able to demonstrate that it is feasible to collaborate with the cryptocurrency industry to provide a safer setting for retail traders.

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