Thailand Authorities Working on new Rules which Could Require Traders to Unveil Income to Have Access in Creating Trading Accounts

By: Michael Wilson

February 26, 2021 5:03 AM

The new set of rules for retail crypto investors, is specifically targeting those who want to open new trading accounts. 

Thai financial watchdog could require local crypto exchanges in the country to ask traders for proof of income before granting them access to opening an account.

In a recent Bloomberg report, the Thai Securities and Exchange Commission (SEC) is formulating a new set of rules which would require crypto investors to show their income or assets before being granted access to a crypto account.

The Thailand financial watchdog secretary general Ruenvadee Suwanmongkol, said that any investor that is restricted from trading crytocurrencies directly from their accounts can do that through available licensed managers.

She believed it is going to be a major concern with the fact most crypto investors on domestic exchanges are very young largely dominated by students and youths. She added:

"We realize young people love technology and innovation, but the risk involved with investment in digital assets are enormous."

Additionally, the general secretary said cryptocurrency traders who did not qualify can invest via financial advisers if they abide by the SEC's regulatory requirements.

The new rules will be revealed by the financial watchdog withing the week, ahead of a public hearing planned for March. as widely speculated that the general secretary suggested that investors have to prove some knowledge of the market before being allowed to open crypto accounts for trading in the country.

It is a welcome development that the Thai SEC is moving to protect it's younger generation towards the risk associated with cryptocurrencies by not stopping but guiding them through.