Thailand Plans to Mandate Income Proof for Crypto Traders

With the spike in the retail demand for cryptocurrency investments, Thailand is considering to impose new rules under which traders need to prove their income and assets before opening an account with a crypto exchange, according to a Bloomberg report.

This came as the Thai government is concerned with the influx of young people to the volatile digital currency markets to make some quick profits.

“It’s a big concern as most crypto investors on domestic exchanges are very young, such as students and teenagers,” said Ruenvadee Suwanmongkol, the secretary-general of the Securities and Exchange Commission.

Thailand already has some strict regulations in place for crypto exchanges, which need to get licenses before commencing their operations in the country. At present, there are six crypto exchanges operating in the country, according to Suwanmongkol.

The Thai SEC is expected to come up with a new set of rules on cryptocurrency trading later this week, but those will be finalized after a consultation on the limitations with the market participants.

Moreover, Suwanmongkol revealed that the rules might mandate the assessment of crypto market knowledge as well.

Soaring Crypto Prices Encouraging Retail Traders

Thailand, the second-largest economy in Southeast Asia, is witnessing the crypto investment demand surge just like any other country. However, the Thai crypto market is very much concentrated. According to earlier estimates, 97 percent of the trades with Thai baht were handled by only one exchange, Bitkub.

However, the exchange is now facing some troubles with its technology infrastructure, and the SEC ordered it to stop onboarding new clients. Furthermore, this allowed other exchanges to capture the market, and two new international crypto exchange operators opened shop in Thailand.

(Photo: pixabay)

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