(CTN News) – As investors sold off financial assets, including stocks and bonds, cryptocurrency trading in Thailand followed global trends.
Several countries have raised interest rates because of high inflation, raising fears of a global recession.
Due to the generally unfavorable market conditions and its own unique challenges, cryptocurrency trading has been the hardest hit.
Due to the unfolding crisis, the murky business of trading crypto has been exposed, leading to bankruptcies and fraud allegations. Also, the negative news does not bode well for Thai investments.
Thailand’s Securities and Exchange Commission (SEC) reported that there were 699,000 active Thai retailers last December, but this June that number fell to 324,000.
There are still around 2.9 million accounts, including foreigners and institutional investors who trade crypto on Thai digital exchanges.
According to the SEC, total trading volume fell from 250 billion baht in November last year to 72 billion baht in June.
Low trading volume can be directly attributed to the sharp fall in Bitcoin’s price, the world’s most popular cryptocurrency. The price of bitcoin has fallen over 55 percent this year to around $20,000 this month.
Transparency in the crypto market
The investment climate has been worsened by negative news about how some crypto companies do business.
On June 30, the SEC fined Bitkub Online and StangPro for fabricating trading information in order to mislead investors on their trading platforms. Market demand was falsely inflated by these activities.
It is a grim reminder of 25 years ago when Baht crashed
Future of Crypto in Thailand
A number of countries have seen a strong interest in investing in digital assets, including Thailand. Observers believe that most of investors have little experience dealing with risky assets. As a result, authorities have stepped in and regulated the industry, including limiting advertising.
There are still some market participants who are optimistic that the global crypto market will reverse, thereby benefiting the Thai market.
Bitkub Online’s CEO, Jirayut Srupsrisopa, recently said that Bitcoin goes through ups and downs, leading him to predict a recovery in 2024-25.
Proponents of the Metaverse platform argue that the platform will contribute to the crypto world by allowing users to have avatars and interact with others online.
Non-fungible tokens that enable artists and people to create unique digital works of art can boost the crypto market, according to some experts.
Related CTN News: