The Thai stock exchange does not want crypto currencies to be included in its new digital asset trading platform.
The Thai Stock Exchange, or SET, plans to launch a digital asset trading platform in the second half of 2021, but it will not include cryptomoney.
The Bangkok Post’s headline, „Digital asset trading is imminent,“ appears at first glance to be bullish for the region’s industry, but the report notes that the exchange does not want to include crypto-currencies:
„The SET says that crypto currencies do not meet its product qualifications and could facilitate money laundering, while damaging the exchange’s image as a ‚high trust‘ exchange.
The exchange has established three criteria for adding tokens to the platform backed by assets from approved companies; First, the token must have an underlying asset that investors can „analyse for value“. It must be a „valuable product that supports economic Crypto Profit activities“, and the product must „have benefits for society and the environment“.
Kasikorn Business Technology Group (KBTG), a branch of Kasikorn Bank that has been working closely with SET on blockchain projects, will be responsible for the search and selection of products entering the new market.
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SET’s Executive Vice President, Kitti Sutthiatthasil, said that crypt coins such as Bitcoin do not meet any of the established criteria. He cited money laundering as one of the main concerns and said that the stability of the currency was also the reason for the omission:
„Thailand has a strong economy. As inflation has been low and the Bank of Thailand’s measures to keep the baht stable have worked in the past, SET has no reason to support the cryptosystems at this time“.
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In fact, Thailand’s economy, which is heavily dependent on tourism, has been affected over the last 12 months by the Covid-19 outbreak and the Kingdom is largely closed to foreigners.
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In related news, the Securities and Exchange Commission or SEC ordered Thailand’s largest crypto exchange, Bitkub, to resume operations after a series of prolonged disruptions during the recent upswing.
According to The Bangkok Post, the Bitkub desktop trading platform closed on Tuesday, January 19, following an SEC order that revised the cryptoregulations in November. The financial regulator gave the firm five days to fix problems that had blocked the platform three times this month due to spikes in trading activity.
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Bitkub currently has a 97% market share in Thailand based on account volume and daily trading. The company reported that the total number of active accounts increased to nearly 800,000 in the first week of January, while volumes shot up to $50 million per day.
At the time of writing, Thailand’s main crypto currency exchange was still offline and investors and traders do not have access to their funds.