Crypto Traders Might Need To Prove Income To Trade In Thailand

It’s no secret that the ongoing bull run has caused a massive spike in crypto retail trading demands. As a result of this, however, Thailand, in particular, has started considering the implementation of new rules. Under these rules, a prospective trader will be mandated to prove their assets and income before being allowed to open a crypto exchange account. This comes by way of a Bloomberg report.

Trying To Protect The Young And Rash

The official reasoning behind this move, according to the Thai government, is fears that a young generation ill-prepared for the massive risks cryptocurrencies hold, will suffer in their quest for a quick profit. Another key mandate that could come with this new rule change is potentially being tested regarding each trader’s respective crypto knowledge.

Ruenvadee Suwanmongkol stands as Thailand’s Security and Exchange Commission’s Secretary-General. In a public statement, Suwanmongkol highlighted that the fact that most crypto traders are either teenagers or students is a subject of great concern for the Thai SEC.

Thailand’s Legislation Already Tough

That being said, it’s not like Thailand doesn’t already have a very strict legislation when it comes to crypto already. Exchanges need to first be licensed before they’re allowed to operate within the state, with six exchanges in total managing to do so, according to Suwanmongkol.

As it stands now, it’s expected that the Thai SEC will come up with a new rule set regarding crypto trading within this week. Of course, those rules will then be finalized afterward, after market participants and the Thai SEC made consultations about the new impositions.

Bitkub Losing Due To Infrastructure Problems

Thailand itself stands as Southeast Asia’s second-largest economy. The country is no exception in the worldwide surge of retail demand for crypto trading, as everyone wants a piece of something that makes a lot of money. What makes Thailand’s crypto markets unique is the massive centralization, as the Bitkub exchange boasts 97% of all Thai Baht-connected crypto transactions within the country.

Bitkub, as it stands now, is in a bit of a pickle, however. The exchange is suffering from infrastructure issues to such a degree that the Thai SEC has mandated it to stop taking in new clients just to try and ease the stress. As one would imagine, this was very great news for various other crypto exchanges, with two international players stepping into the Thai market as well.