The Thailand Securities and Exchange Commission (SEC), which is the main financial regulatory agency in Thailand, said it is ready to establish stricter laws on digital assets in an effort to safeguard the assets of investors.
According to a report from the Bangkok Post, the SEC is seeking to protect crypto investors amidst the collapse of crypto exchanges that have rocked the industry this year.
So far, the abrupt demise of Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, the collapse of the LUNA network, and the now-recent implosion of the FTX platform have all sent shockwaves through the industry.
The effect of the platform’s sudden collapse can be felt by the lack of confidence in the blockchain industry. Regulators are therefore looking for how to implement policies and rules that will guide the industry.
It is worth noting that Thailand’s investors using Zipmex, a local exchange were extremely affected by the collapse of the Celsius Network. Recently, Celsius Network was ordered by a judge to return crypto to its custody users.
Additionally, the SEC is also trying to establish rules in the advertisement for crypto. According to the report, the SEC claims that celebrities who promote crypto could be seen as contributing to the hype, which could lead people to make poor investment decisions.
Regulations in the Crypto Space
The SEC’s primary goal is to ensure that the Securities markets operate fairly and transparently so that investors can make informed decisions about where to put their money.
It is fascinating to note that this is not the first time Thailand’s SEC is seeking to establish policies that protect investors’ digital assets.
In September, the SEC made an announcement to review advertising regulations for businesses in Thailand. The advertising revision was aimed at improving the effectiveness of advertising, complying with international regulatory standards, and strengthening protection for traders of digital assets.
Regulators in Australia are also looking forward to establishing tighter crypto regulations in 2023, which is aimed at preventing the losses of local investors following the collapse of the FTX exchange platform.
Kate Mulligan, partner at Sydney law firm King Irving stated that Australia will become one of the forerunners across the globe if it could develop custody regulations by next year.
In Europe, Martin Bruncko, Vice President of Binance claims that the introduction of the European Union’s Markets in Crypto Assets (MiCA) law will create an exciting environment for crypto exchanges in the continent.
