Thailand may set income criteria for crypto traders
Thailand plans to introduce new rules to curb individuals' cryptocurrency trading after a surge in inflows from young people sparked concern.
Retail investors will probably be required to show their income or assets before opening trading accounts with the nation's six licensed cryptocurrency exchanges, said Ruenvadee Suwanmongkol, the secretary general of the Securities & Exchange Commission. Anyone who isn't allowed to trade crypto via their own accounts can invest through licensed fund managers or financial advisers, she said, declining to elaborate.
"It's a big concern as most crypto investors on domestic exchanges are very young, such as students and teenagers," Ruenvadee said. "We realise those people love innovations and technology, but investments in these assets have enormous risk."
Thai authorities are joining other countries' regulators in warning about cryptocurrencies, even as price rallies draw retail investors searching for higher returns amid record low interest rates. Bitcoin, the largest token, has added more than $450 billion of value in 2021 and reached $1 trillion in market capitalisation for the first time last week.
The new rules may require individual investors to possess some knowledge of crypto markets before being allowed to open accounts to trade them, said Ruenvadee.
Trading of cryptocurrencies on the nation's licensed bourses more than tripled in January from December to 65 billion baht ($2.17 billion).