The Securities and Exchange Commission (SEC) of Thailand has unveiled the qualification requirements for cryptocurrency investors and launched a public comment on the proposed rules.
According to the document published by the financial regulator, it is planned to establish more stringent requirements for cryptocurrency investors, including their qualifications, income and trading experience. Local cryptocurrency investors must have a net worth of at least THB 10 million ($ 332,500), and such investors must have a minimum annual income of THB 1 million ($ 33,250). At the same time, the investor’s net worth does not include the real estate where he permanently resides.
Cryptocurrency traders in Thailand must have more than two years of experience in securities or derivatives trading. Otherwise, the trader is obliged to undergo appropriate training and obtain a certificate from the authorized bodies. The SEC plans to discuss the initiative live on its Facebook page on March 24. The public consultation will last until March 27.
The SEC has previously announced that it is going to establish qualification criteria for cryptocurrency investors. The agency believes that these rules will protect them from all sorts of risks, as the interest of local traders in digital asset trading has increased dramatically. SEC Secretary General of Thailand Ruenvadee Suwanmongkol called cryptocurrencies financial innovations prone to high volatility.
“Most cryptocurrency traders are very young – they can be students and even teenagers. We understand that the younger generation loves innovation and technology, but investing in digital assets carries a huge risk, ”said Suwanmongkol.
He added that such investments require a lot of knowledge and understanding of how crypto assets work. In addition, when working with digital currencies, people should belong to a risk profile of investors that is insensitive to investment losses. Suwanmongkol also said that investors who are not eligible to trade digital assets will still be able to invest in them through licensed fund managers or financial advisors.
Recall that last fall, the SEC of Thailand updated the net capital requirements for brokerage companies and firms working in securities and digital assets.
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