TL; DR Breakdown
- Bank of Thailand wants to release its crypto regulation by 2022
- The financial institution is wary of the growing sector
- Other countries are making moves to regulate their crypto sector
One thing that has been clear over the years is that trading digital assets must come with some regulations. This is because it helps to keep the sector at peace and away from illicit actors. Although regulations might have little effect initially, there is always a lasting effect at the end of the day. Taking this initiative, the Bank of Thailand has announced that it will release its crypto regulatory framework by 2022.
Bank of Thailand acknowledges the growing crypto sector
According to a Bank of Thailand memo, the financial institution wants to release a comprehensive framework that will guide the activities of traders and companies by 2022. The real objectives behind this move are to enable a low-risk trading environment for investors and ensure consumer protection is in place.
Giving his review at an interview, the Governor of the Bank of Thailand, Sethaput Suthiwartnarueput, says the bank hopes to release a report by 2022. The main aim of the report is to specify the red tapes that the country will be drawing around crypto trading activities in the country.
With Thailand recording massive surges in the number of daily traders entering the market, the financial institution acknowledges that the sector provides more risks than most can see. This is one of the reasons for the regulation; to provide a safe and enabling environment for traders while limiting those risks. In order to achieve its aim, the premier financial institution in the country will team up with the Thailand SEC and the ministry of finance.
Other countries are considering regulating their crypto space
Suthiwartnarueput has also told traders to be careful of their actions in the crypto market. Even though assets show potential, they may lose a lot of money due to volatility. The Bank of Thailand, in its move to ensure limited losses, has urged local financial institutions in the country to steer clear of all crypto trading activities.
Asides from the Bank of Thailand planning to regulate its crypto space next year, Australia is another guilty party in this move. According to a recent report, authorities in the country are set to sit down with stakeholders to devise a way forward regarding the sector’s regulation.
With the sector already large in Australia, the government wants to create a better environment for traders and other related investments. The new regulatory framework is tipped to be one of the best worldwide in recent years as the country continues on its approach to providing a regulated space for traders to function.