Crypto market regulations are often seen as constricting and restrictive, but they can also have positive effects. If a cryptocurrency can obtain regulation that is deemed to be fair by the public, this will lend credibility and legitimacy to the coin’s trustworthiness. New regulations of the crypto market could protect long-term investors, prevent fraudulent activity within the crypto ecosystem, and provide clear guidance to allow companies to innovate in the crypto economy.
Thailand’s goal of becoming Southeast Asia’s leading trading center for digital assets suffered a setback after regulators tightened rules in the wake of trading irregularities and a major acquisition involving a crypto exchange.
Crypto market regulations have been tightened by the Thai SEC, while the central bank is granted more powers to regulate the market. At the same time, Gulf Energy Development plans to establish a crypto exchange.
A number of new rules have been passed into law by Thai regulators in order to address the crypto market aggressively. SEC actions have had an impact on Thailand’s trading numbers, as active accounts are down 33% compared with the start of the year.
A new rule passed by the SEC on Sept. 1 governs crypto advertisements, requiring companies not to present false or misleading information and to warn about cryptocurrency risks. After the notice is announced, the advertisements must be changed within 30 days.
According to Finance Minister Arkhom Termpittayapaisith, the Central Bank of Thailand will have more power over the crypto market. At the moment, the Thai SEC regulates the crypto market, but those responsibilities will now be partially shared between the two, and the SEC will handle this matter.
However, there are still exchanges about breaking into the country even though the laws have been tightened. A Thailand-based energy company, Gulf Energy Development, seeks approval from the Securities and Exchange Commission to operate an exchange and brokerage. By partnering with Binance, it hopes to build these platforms.
Crypto Market companies are facing stern action from regulators
Among all cryptocurrencies in Thailand, Bitcoin holds the majority market share at 11.83%. Tether, Ethereum, and Gala are the next three cryptocurrencies after Bitcoin. A tightening of regulation may decrease the trading volume of these assets.
Following tightened regulations, the Siam Commercial bank’s acquisition plan for Bitkub has fallen through. An exchange stake of 51% would have been acquired by the bank, Thailand’s lost lender.
Moreover, a Bitkub executive has been fined $235,000 by the SEC for insider trading. A police complaint has been filed against Zipmex, which has filed for bankruptcy protection.
Crypto Market conviction still exists in Thailand
After the rout earlier in the year, Thailand definitely wants to exert some control over the market. Sarath Ratanavadi, CEO of Gulf Energy Development, is eager to invest in blockchain technology. A blockchain investment is on the minds of Ratanavadi, the second-richest man in Thailand.
This led him to want to establish a crypto exchange, and he is partnering with Binance to do so. Binance US’ preferred stock, as well as the Binance Coin, will also be invested in the company.
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