The Securities and Exchange Commission of Thailand (Thai SEC) has launched a public consultation on proposed cryptocurrency investor qualification rules.
It has been reported that the Thai SEC is now seeking public comments on proposed qualifications for crypto investors including certain income and trading experience requirements.
However, as part of the initiative, the Thai SEC is planning to hold a LIVE hearing through its Facebook page on March 24. The authority said that the public consultation will continue until March 27.
The report said that according to a proposed consultation paper, the regulator is planning to set solid limits on cryptocurrency trading in Thailand, including requiring local crypto investors to possess net assets of at least 10 million baht ($332,500) as well as have an annual income of 1 million baht ($33,250).
Thailand’s SEC is seeking public comments on proposed income and education rules for local #crypto investors. https://t.co/qwMecUL2sk — Cointelegraph (@Cointelegraph) February 25, 2021
According to the proposed rules, investor net worth will not include the value of real estate used for permanent residence.
The SEC is also looking to require traders to have investing experience and education as part of the new investor qualifications, as local traders should have at least two years of experience in securities or derivative trading or obtain a special certification from the authorized institutions.
Likewise, the SEC initially announced its plans for crypto investor requirements earlier this month. By initiating the new rules, the authority aims to ensure proper investor protection measures as local interest in crypto investments surges.
The report stated:
“Cryptocurrency is a financial innovation that is exposed to high volatility. Investment in this digital asset thus requires knowledge and understanding and a risk profile that is not so sensitive to investment loss.”
Ruenvadee Suwanmongkol, the Secretary General of the SEC, said that investors who do not qualify for trading will still be able to invest through licensed fund managers or financial advisers.
Thus, Suwanmongkol added:
“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.”