Thailand stock exchange says no to digital currencies

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The Stock Exchange of Thailand has snubbed digital currencies while announcing a new trading platform for digital tokens, citing volatility and high levels of money laundering and other illegal activities in digital currency markets.

The new project, to launch later in 2021, will offer a platform for exchange of asset-backed digital tokens, but will not include options to buy or sell digital currencies like BTC, which the Stock Exchange of Thailand rejected outright.

Reports in local press suggest the stock exchange felt digital currencies like BTC did not meet the threshold criteria for listing, and that including crypto would damage the reputation of the exchange.

Kitti Suthiatthasil, Executive Vice-President of the Stock Exchange of Thailand, set out the reasons for the decision not to support cryptocurrencies on the new platform.

“Cryptocurrencies like [BTC] are currently used in some countries which are experiencing high inflation and currency fluctuations such as Zimbabwe and Venezuela as an equivalent of fiat money. Another reason why the SET is not interested in cryptocurrencies despite their recent surges is that they can easily be used for money laundering. If people are caught laundering money on the SET digital asset platform using cryptocurrencies, it could harm the SET’s reputation and overall investor confidence.”

“We just buy the future and hopefully the digital asset marketplace will grow as expected.”

The platform is expected to be rolled out in the second half of the year, and will provide a forum for investing in a range of regulated digital assets.

It comes against a backdrop of strong regional growth for digital assets in Asia, with Korea, Japan, Singapore and China all working with or experiencing strong growth in the sector.

With Thailand now set to benefit from a new digital asset exchange, minus the digital currencies, it looks set to introduce investment in digital tokens and securities to a wider pool of investors.

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