Regulators in Thai have taken a hardline approach on the crypto market with authorities passing several new rules into law. Notedly, the Thai SEC has tightened rules related to the crypto market prompting a drop in trading numbers to 33%.
It passed new rules on September 1 for companies not to present false or misleading information. The Thai SEC also warned about the risks of investing in cryptocurrencies. The regulator said advertisements must change within 30 days of the announcement of the notice. The SEC has been looking into regulation of the crypto market. But now, it will be in charge of the change. The central bank is being given more powers to regulate.
Meanwhile, Gulf Energy Development wants to launch a crypto exchange in Thailand. It wants to invest in blockchain ecosystems and as such is seeking a nod from the SEC to operate an exchange and brokerage. The Gulf Energy Development wants to build these platforms through a partnership with Binance. Sarath Ratanavadi, the CEO, wants to invest some of the company’s revenue in blockchain companies.
However, tightening rules in Thailand are making crypto companies stop short. It has resulted in Siam Commercial Bank not going ahead with plans of acquiring Bitkub; it was set to acquire the crypto company at a 51% stake. This also comes after the Thai SEC fined a Bitkub executive $235,000 for insider trading. Moreover, the regulator has filed a police complaint against the bankrupt Zipmex.