The SEC is considering the introduction of screening criteria for retail crypto investors which could include age, trading experience and wealth.
Thailand’s SEC (Securities and Exchange Commission) is reportedly considering introducing new qualifications for retail crytocurrency trading.
According to the Bangkok Post, Thai regulators are set to hold a public hearing aimed at collecting market and public input on the possibility of introducing standard qualifications for retail investors interested in cryptocurrency accounts.
The move is said to be aimed at addressing the recent increased interest in cryptocurrency investment and trading, which is creating regulatory and safety concerns for both regulators and investors.
The SEC’s concerns over investors’ financial safety follow a surge in cryptocurrency prices over the past few months and a rapid rise in the number of new accounts opened at local digital currency exchanges and intermediaries.
According to reports, retail investors’ net buying of digital assets has grown from THB 500 million in November 2020 and THB 1.1 billion in December 2020 to THB 1.2 billion in January 2021. Purchases of digital assets amounted to THB 400 million in just the first eight days of February.
“New investors are flocking to the cryptocurrency market,” SEC secretary-general Ruenvadee Suwanmongkol said. “The qualifications for cryptocurrency traders are to ensure new retail investors opening crypto trading accounts have sufficient financial buffers to absorb risk from volatile price swings.”
Although no timeframe has been set for the public hearing, Thailand finance minister Arkhom Termpittayapaisith has asked the SEC to supervise local digital exchanges to protect new investors with little knowledge or experience in cryptocurrencies.
Ruenvadee called for the introduction of a screening system to cushion investors from financial loss. “Cryptocurrencies have high risks for investors,” she said. “We should set some screening criteria such as age, trading experience and level of revenue or wealth to limit risks.”
“These limits already exist for high-yield bonds, which are only available to some types of investors. Digital assets are a big challenge, not only in Thailand but for global regulators,” Ruenvadee added.