The SEC and the Bank of Thailand follow the trend.

“Cryptocurrency” adjusts investor risk management strategy

Thai Rath Edition

13 Dec 2021 6:32 a.m.

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the heat of the current

“Cryptocurrencies” over the past month

including investing in the digital asset market that is rapidly increasing in value

money apprehension

It has attracted the popularity of many young people who are tech-savvy.

including the movement of business operators that come out

Press conference open to bringing digital assets and coins of Thailand and abroad to pay for their own goods and services

Even knowing that these assets cannot be legally repaid.

which can pay for goods and services with both movie theater operators and real estate entrepreneurs in every camp

All department store operators

And the most obvious is the announcement of a large department store with a digital asset trading center, the market leader announced a joint venture company to set up.

“Digital asset community” and accept payment of goods and services in affiliated shopping malls

including many business partners

As a result, the Office of the Securities and Exchange Commission (SEC) and the Bank of Thailand (BOT) have issued a warning against investment and do not support investment.

and using digital assets or cryptocurrencies to buy goods and services

by reasoning of the high volatility of the high value that is growing faster

Preservation that requires technological know-how.

and risk of personal data theft

until it may get involved in a money laundering process

This will damage investors and merchants.

However, neither the SEC nor the Bank of Thailand prohibits trading or investing in

“Cryptocurrency”, insisting that it sees the benefits of bringing forward various financial innovations.

but clearly expressed concern

as well as has issued rules

And prepare to issue additional criteria to regulate the digital currency "Digital Currency" to protect investors from damage.

"Economic Team" would like to summarize the concerns of the SEC and the Bank of Thailand if there are any issues.

both the potential damage to investors

overall concern

and economic stability.

What will the “cryptocurrency market” look like after the “officials” have clearly expressed their stance on this issue?

The value of the “crypto market” soars

Let's start from the value.

“Digital asset market” which is money in the virtual world.

that the value has increased greatly in the past

Both trades have greatly increased in value and prices are also highly volatile.

The SEC has released a weekly report on the digital asset market, stating that the global digital asset market

It has a market cap of $2.27 trillion, or 74.91 trillion baht (33 baht per USD), with 40.75% coming from the value of Bitcoin (Bitcoin), while its daily trading volume is as high as $130,210 million. There is also information that digital assets offer a very high return on investment compared to stocks.

gold and oil

Even the price of digital assets is highly volatile compared to stock prices.

Data from Bloomberg as of Dec. 6 indicates the return on investment in various assets.

From the beginning of the year to the present (Year to date) as follows: Gold minus 6.32% Emerging markets minus 6.02% US Treasury yields 10 years plus 1.43% Thai stock markets plus 9.58% MSCI World stock markets Plus 15.88% Nasdaq Plus 22.95% Oil Plus 43.22% Bitcoin Plus 71.35%

All of these resulted in investors

Especially the new generation of investors who are happy to invest in digital assets.

which is in the same direction both abroad

and Thailand, which found that the number of individual investor accounts is increasing rapidly, most recently, as of the end of October, there were a total of 1.77 million investor accounts.

While the SEC information states that

Digital asset trading market in Thailand

Most of the turnover comes from natural persons in the country. In November, the total turnover of domestic individuals was up to 190 billion baht, foreign natural persons 39 billion baht, and foreign juristic persons 14,000 million baht.

The value of digital asset trading through exchanges or digital asset exchanges licensed in Thailand throughout the year ending 6 Dec. 21 has a total value of 1.56 trillion baht.

The most traded digital assets in the past week on exchanges or licensed digital asset exchanges.

Leading by KUB, JFIN, Six, The SandBox and Ethereum, the digital asset turnover has returned to rise in line with the global crypto-currency price trend. Bitcoin and Ethereum is growing less.

Other coins

By starting to spread the distribution of various coins more.

In the past, digital coin trading

If looking only at Thai entrepreneurs, namely KUB, JFIN and SIX, the volatility in the Thai trading board is very high.

With the price moving forward to a record high (All Time High), KUB coins peaked at 500 baht before selling pressure dropped to the lowest on the same day at 150 baht. JFIN coins hit a high of 248 baht before. will fall to the lowest at 88 baht and SIX coins to the highest 19.8 baht and down to the lowest at 6.1 baht

SEC warns and issues investment regulatory rules

From such cases, the SEC warned that

Purchasing Purchasing

close sale of digital coins

At the beginning of the past month

The SEC and the Central Investigation Police

Economic Crime Suppression Division

It was coordinated to discuss investigative and investigative processes in capital markets and digital assets.

to increase law enforcement efficiency

especially in the case of a broad impact on people and society

Including the exchange and linking of work information that is beneficial to each other.

It is considered proactive.

According to the Digital Asset Business Act B.E. 2561, due to the high volatility of cryptocurrency trading in the past

The police are ready to support the tracking of the accused who fled the crime to bring them to legal prosecution.

It is also accelerating the work to improve the service guidelines for digital asset money managers' clients.

and digital asset advisors to transact on

Decentralized Finance Platform (DeFi Platform) to prevent the solicitation of the public to use the service at large

due to high risk

The SEC sees that technology is currently being applied to provide financial services in the form of DeFi, which is a decentralized financial service that does not rely on intermediaries.

It is used in a variety of transactions such as lending and borrowing of digital assets.

Using digital assets to increase liquidity to earn interest and fees, etc.

This transaction is new.

may be subject to a number of applicable laws.

and is still in the process of considering whether the service will be under the supervision of any agency

high risk

And in the past there have been cases of fraud and cyber theft.

causing damage to investors and may not have the opportunity to follow up

As the power to access and control the assets is solely owned by the platform developer.

The SEC therefore has an idea to improve the aforementioned rules to be clearer.

by forbidding business operators, money managers, digital assets

Taking the client's digital assets into any transaction on the DeFi platform, and digital asset advisors are prohibited from giving advice to clients.

or conducting an analysis of DeFi in order to prevent widespread public solicitation of such services.

The Bank of Thailand is worried about using it instead of money - worried about stability

during the same period

The Bank of Thailand has expressed concern.

And it clearly does not support the use of digital assets to trade goods and services for fear that it will affect the stability of the domestic financial system.

The Bank of Thailand issued a statement clearly

We are constantly pursuing the adoption of digital assets in various forms.

both for investment and the development of innovative financial services

Including the adoption of digital assets as a medium for payment of goods and services that tends to increase continuously

I reiterate that the BOT does not support the use of digital assets for payment of goods and services.

Due to the high volatility of digital asset prices

There is also a risk of cyber theft.

Risk of personal data leakage

or being used as a tool of money laundering

which will affect the store

business operator

including the people to be damaged

and in the next phase

If digital assets are used to pay for goods and services on a large scale, it may affect the stability of the payment system.

financial stability

and damage to the general public. The Bank of Thailand is considering a regulatory model for the service of payment of goods and services with digital assets.

to appropriately limit the risks

While Mr. Sakkapop Panyanukul, Senior Director

The Macroeconomic Department of the Bank of Thailand stated that the Bank of Thailand is concerned about digital assets that are not backed by other assets (Blank Coin) because their prices are highly volatile.

unstable value

which may not be suitable for bringing

“Media for payment of goods and services” by the Bank of Thailand

SEC to manage risks

and competition must be equal

While digital assets backed by other assets (Stable Coin) will be maintained as an e-money business.

by taking care of the payment structure

and safety

“Using digital assets to pay for goods and services

which may not have to go through an intermediary

causing risks to affect consumers

Price volatility, and payment-related security standards such as cyber threats can be hacked.

Loss of assets

or coins."

In addition, if it is widely used, it may affect the stability of the payment system.

and financial stability

because if people come to hold more digital money

Maintaining the value of money will be less.

because people use less baht

while the ability

The Bank of Thailand oversees financial conditions in line with the declining economy, interest rate, inflation

moving capital

And taking care of volatility will be more difficult.

and when the economic crisis

may not be able to prevent

The private sector points to a balance point to support economic growth.

After the emergence of 2 government agencies that regulate investment and stabilize the financial system in the country

It's like coming out to deter or tapping a break in the digital asset industry.

and entrepreneurs reduce the heat

At the same time, the dramatic movements of the three coins began to calm down.

It must acknowledge and appreciate the two government agencies that act quickly to prevent further damage to investors.

Including warnings that do not support spending and are at risk because the law does not accept

Even if we can't resist the trend of technology that is developing and changing every day if we really invest and spend it in the future.

As for the private sector view, Mr. Jirayut Supsrisopha, Chief Executive Officer of Bitkub Capital Group Holdings Company Limited, a business group in digital assets and blockchain technology.

and crypto-currency market service providers through online bitcoins that investment in assets around the world

Digital Asset Market Value

or about $3 trillion in cryptocurrencies

If we only hope for 1% of investors moving their portfolios to other assets

Therefore, there are many opportunities for growth of digital asset investment in the future.

Over the past 3 years, Bitkub has grown on average 1000% per year from being a “startup” business to a “unicorn scale”.

The second in Thailand

Currently, the trading value of digital assets through Bitkub's center has increased by an average of 25 billion baht per day from 1.2 million active members. There are many new investors coming to invest, increasing the age base from the previous 20-30 years, but After the launch of the mother ship SCBX announced a joint investment with Bitkub.

has created a trend for investors to invest a lot

A large number of investors in other asset markets have moved in, not limited to the same new generation.

“Investing in digital assets

Or cryptocurrency (Digital Asset) is a megatrend of the world and in the future will be larger than the original investment (Physical Asset) is a trend of the world.

In the future, digital assets will be many times larger.

everyone has to adapt

which we can use this trend to create an ecosystem to support the new world

Government sectors can use these trends to create value for economic growth”.

economic team

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