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Thailand Seeks the Overhaul of Digital Assets Laws



Thailand Seeks Overhaul of Digital Assets Laws

Thailand’s Finance Minister has told a forum that the laws governing cryptocurrencies and digital assets should be reexamined to address ambiguities. He remarked on Friday on a Securities and Exchange Commission (SEC)-hosted forum on capital market development.

Mr. Arkhom stated that digital assets are relatively new to the capital markets. The Finance Ministry has consulted closely with relevant authorities, including the Bank of Thailand, regarding supervising investments in digital assets.

However, he said that the authorities have yet to clarify certain grey areas, such as which agencies oversee particular investments.

Mr. Arkhom stated that authorities are working to prevent investment fraud involving digital assets.

He stated that if fraud occurs, the police should be the first to intervene, and the case should be handled according to criminal law.

thailand digital assets

Mr. Arkhom stated that the capital markets continue to play a significant role in Thailand as one of the country’s primary sources of capital, as the country still requires substantial funding for infrastructure investment.

According to him, the most recent capital market development plan, which is scheduled for cabinet review, also includes a cryptocurrency development plan.

Several former SEC leaders concurred at the same event that digital asset control measures are a significant challenge for regulators, stating that the Bank of Thailand must participate in the oversight.

Former SEC general counsel Ekamol Kiriwat stated that regulating digital assets will challenge the SEC in the next phase due to the need for a new set of rules and the fact that regulations in many other countries vary.

“Thailand must supervise this through intermediary operators such as trading exchanges, even though each country’s supervision is distinct. Some nations prohibit the trading of digital assets, while others place them on the alternative asset market, “said Mr. Ekamol.

“Central banks are responsible for the regulation in some nations, making this a formidable obstacle for regulators. But I believe we can progress steadily and sustainably with good regulatory rules.”

digital assests

Former SEC secretary-general Pakorn Malakul stated that digital technology would play a larger role in the development of Thai capital markets.

“The SEC will have to play a greater role in facilitating stakeholder participation,” he stated.

“I propose that the SEC make greater efforts to improve the quality of publicly traded companies and to encourage them to implement social and corporate governance principles.”

In addition, the SEC must increase the number of listed companies in the new economy and expand access to capital for small to medium-sized businesses, according to Mr. Pakorn.

“Thai capital markets will play an increasingly significant role in the financial system and the allocation of capital resources to support the sustainable and inclusive growth of the Thai economy over the next decade,” said Prasarn Trairatvorakul, the SEC’s secretary-general from 1999 to 2003.

The former secretary-general of the SEC, Thirachai Phuvanatnaranubala, stated that Thai capital markets must quickly adapt to the changing global situation.

Currency Trading

As the world has become more divided, trade flows have shifted, and various currencies have been used to complete transactions. Mr. Thirachai stated that there had been an effort to reduce trade reliance on the US greenback, the world’s dominant currency.

For example, the exchange rate between the Russian ruble and the Indian rupee has increased. He said there had been attempts to generate higher returns from local currencies or use them for borrowing in the future.

Mr. Thirachai stated that, as a result, the SEC must find ways to serve and facilitate transactions between such local currencies.

As a result, the digital renminbi will be utilized more frequently, he predicted.

Mr. Thirachai stated that Thailand must prepare to facilitate this flow and allow Chinese tourists to use digital renminbi in the future.

He predicted that the digital economy would continue to expand because it can help reduce transaction costs and increase transparency.

The United States incorporated the digital economy into its Indo-Pacific Economic Framework and attempted to develop regulations to govern it. Mr. Thirachai stated that the goal is to maintain the United States’ dominant position in international markets while stifling the growth of the digital renminbi.

He stated that Thai capital market regulators must devise a plan to address these issues shortly.

Cryptocurrency Expert Warns Over Volatility of Digital Assets

Cryptocurrency Expert Warns Over Volatility of Digital Assets

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