Thailand gov’t wants digital currency traders to prove income

Thailand gov’t wants digital currency traders to prove income

Digital currency traders in Thailand may have to prove their income if the government follows through with its latest policy proposals. The government believes such a measure would cushion amateur traders against huge losses by ensuring they trade within their means.

The Thai Securities and Exchange Commission first revealed the proposed law a week ago. It announced that it would seek a public hearing to determine what qualifications a Thai trader needs before diving into digital currencies. According to the regulator, such qualifications would ensure that investors had “sufficient financial buffers to absorb risk from volatile price swings.”

The Thai government is considering this proposal, Bloomberg now reports. It will require the traders to show their income or assets before they can open accounts with the exchanges. It may also require them to prove they have some basic knowledge of digital currency markets.

In a recent interview, the SEC’s secretary general Ruenvadee Suwanmongkol remarked, “It’s a big concern as most crypto investors on domestic exchanges are very young, such as students and teenagers. We realize those people love innovations and technology, but investments in these assets have enormous risk.”

For those that don’t qualify to invest in digital currencies, they can still do so indirectly via licensed fund managers or financial advisers, she added.

The SEC will, however, proceed with feedback collection as earlier stated. Ruenvadee welcomed all stakeholders, including exchanges and brokerages, to give their feedback on the proposed rule.

Thailand’s digital currency market has recorded stellar growth in recent months, she revealed. In January, Thai traders transacted over 65 billion baht ($2.17 billion). As CoinGeek revealed, Bitkub exchange dominates this market, accounting for up to 90% of this amount. The exchange was overwhelmed in January when the trading volume tripled and ended up experiencing outages. The SEC has since then ordered it to do better and even halted its new signups.

Tokenization is a new sector that’s coming up in Thailand, Ruenvadee revealed. She claimed that in the first half of this year, a local company will conduct an ICO for the first time. The tokens will be backed by the rental revenue of its properties, she added. The regulator didn’t disclose when the ICO would list or which company is set to conduct it.

See also: CoinGeek Live panel, Digital Currency & Global Compliance: Tools & Tips for Exchanges, Wallets & Other Service Providers

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.

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