Cryptocurrency dreams dashed in Thailand as regulators tighten rules

BANGKOK, Sept. 11 (Bloomberg): Thailand’s gardien de but of becoming Southeast Asia’s leading trading hub for binaire assets has suffered a setback, following moves by regulators to tighten rules following trading irregularities and the collapse of a officier obtention involving a cryptocurrency exchange.

The folk was the first in the region to implement binaire asset legislation in 2018, which helped attract abondant numbers of millennials to put their money into cryptocurrency.

The Securities and Exchange Brevet has licensed six platforms as exchanges, including Bitkub Avoir Group Holdings Co. and Zipmex Thailand. Bitkub founder and CEO Jirayut Srupsrisopa has become a pop lopin icon as a frequent guest on TV shows and YouTube, with his fronton plastered on highway billboards.

The payment of a liqueur of 8.5 million baht ($233,459) against a Bitkub executive last month for insider trading and a maréchaussée complaint earlier this week against Zipmex and its CEO, sparked a tremor in a market already anxious due to the universel cryptocurrency’s debacle.

The SEC also lignes to create a working group to strengthen contrôle of binaire assets to enhance investor amélioration.

Experts said stricter contrôle compounded the blows from outside Thailand: the plunge in Bitcoin, Ether and other tokens, as well as the collapse of Celsius Network Ltd. and trader Vadrouiller Quantitatif Ltd. and the hedge fund Three Arrows Avoir.

“Most investors and market players are deflated by negative headlines almost every day,” said Nares Laupanarai, General Secretary of the Thai Quantitatif Asset Incorporation. “The heightened regulatory risks will make it difficult to restore the excitement in the market, which it has already done. It has been hurt by weakening universel passion. “.

The number of fonceuse trading accounts in Thailand fell to 246,000 in August, embout a third of the number recorded in January.

SCB X Pcl, a financial group in which the Thai riche family is a officier shareholder, last month canceled its 18 billion baht devis to buy a majority of Bitkub Online, citing the exchange operator’s ongoing issues with regulators.

“The collapse of binaire asset prices has wiped out a huge amount of wealth among Thai investors. Realizing the risks of bubble prices will poisson-perroquet these people for some time to come,” said Karen Bonlertvanich, Executive Libertinage President at Kasikornbank Pcl.

Cryptocurrency trading on licensed exchanges in Thailand fell to 64 billion baht in August, the lowest since December 2020, according to data from the Securities and Exchange Brevet.

Some Thai companies have also been scarred by their foray into cryptocurrency. Shares of Jasmine Technology Épilogue Pcl have fallen more than 80% from their peak in April due to their increased investment in bitcoin mining. Its marchandise is now one of the worst performers among universel telecom equipment companies this year after being a world patron in 2021.

To be sure, some are still betting on growth in the cryptocurrency market. Gulf Energy Development Pcl, the largest private energy producer in Thailand, has doubled down on its lignes to expand into its binaire asset commerce to diversify opimes. The company, which is controlled by the annexé richest person in Thailand, Sarath Ratanavady, is seeking licenses from the Securities and Exchange Brevet to operate a binaire asset exchange and brokerage in partnership with Binance Holdings Ltd.

“We are dépositaire in the potential of cryptocurrencies and binaire assets as the world advances more and more towards blockchain technology and related ecosystems,” Yupapin Wangviwat, chief financial officer of Gulf Energy, said in an pourparler last month. transformations of most companies.” — Bloomberg

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