The Thai exchange does not want cryptocurrencies to be included in the new digital asset trading platform.
Crypto asset is not desired
The Thai Stock Exchange, or SET, plans to launch a digital asset trading platform in the second half of 2021. However, this exchange will not include cryptocurrencies.
The Bangkok Post notes that a report titled “Close digital asset trading” seems at first glance to be bullish for the industry in the region, but the exchange does not want to include cryptocurrencies:
“SET says cryptocurrencies do not meet the product qualifications, and while facilitating money laundering, it can damage the exchange’s image of a” high trust “exchange.”
The exchange has set three criteria for listing the asset-backed tokens of approved companies; First, the token must have an underlying asset that investors can “analyze at value”. It should be a “valuable product that supports economic activities” and the product should “benefit society and the environment”.
Kasikorn Business Technology Group (KBTG), a branch of Kasikorn Bank, which works closely with SET on blockchain projects, will be responsible for the procurement and scanning of new products.
Kitti Sutthiatthasil, vice president of SET, said that cryptocurrencies like Bitcoin do not meet any of the set criteria. He cited money laundering as a major concern and said currency stability was also the cause of neglect:
“Thailand has a strong economy. SET has no reason to support cryptocurrencies right now, as inflation remains low and Bank of Thailand’s measures to keep the fortune have worked in the past. ”
In fact, Thailand’s economy, which is heavily dependent on tourism, has been devastated in the past 12 months due to the Covid-19 outbreak and the Kingdom’s largely closed to foreigners.
Shaping the Thai stock market
In a related report, Thailand’s largest crypto asset exchange was instructed by the Securities and Exchange Commission after a series of long cuts during the recent rally.
According to The Bangkok Post, the plant’s desktop trading platform was closed on Tuesday, January 19, following an order from the financial regulator revising its crypto regulations in November. The financial regulator gave the firm five days to fix issues that crashed the platform three times this month due to spikes in trading activity.
Plants currently have a 97% share in the Thai market by account volume and daily trade. The company reported that the total number of active accounts rose to almost 800,000 in the first week of January, while volumes increased to $ 50 million per day.