Strict Crypto Regulation Is Coming After FTX Collapse: Warns Thai SEC

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The collapse of FTX has spurred action by another financial watchdog. The Thailand Securities and Exchange Commission (SEC) is preparing to impose stricter regulations on crypto assets similar to those in the global market in a bid to protect investors.

According to the Bangkok Post, the SEC said regulators should play a bigger role in improving investor protection mechanisms.

The regulator has set up a working committee made up of relevant government agencies and private sector representatives to study and propose ways to improve the laws to adapt to the market. The use of Decentralized Ledger Technology (DLT) in enterprises will also be a focus of the recommendation. The monitoring of potential new risks and the protection of investors will take center stage. The SEC also asserted that issues relating to the regulation of advertisements and product promotions, the prevention of conflicts of interest and the strengthening of cybersecurity will be addressed with effective regulation. The collapse of the algorithmic stablecoin in the Terra ecosystem triggered the downfall of a large number of crypto lenders, such as Three Arrows Capital, creating a credit crunch in the ecosystem. However, the severity of the market downturn only became known after the collapse of FTX, which led to a massive reduction in capital inflows. There is also an increased threat that some of the existing centralized exchanges could follow suit. These events highlight the vulnerability of the digital asset industry and the lack of proper oversight, according to the Thai SEC. The latest development comes three months after the SEC issued a statement asking cryptocurrency companies to include clear and visible warnings about the risks associated with virtual tokens and crypto investments. The regulator had also warned companies operating in the country to refrain from giving false and misleading information in their advertisements. SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).

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