Thai Crypto Traders have to Show Income Statements

There are rumors about the implementation of a new rule for Crypto users in Thailand. As bitcoin rallied its way to $40K, then to $50K Thailand has seen massive growth in Crypto investors. Sources say, most of these investors are partially young with limited crypto knowledge. After noticing this unusual surge falling prey to the lucrative crypto profits. The Thai Government is taking strict measures to regulate cryptocurrencies. In order to save such investors and their money from such high-risk assets.

Details about the Proposed Rule

The new rule implicates investors to showcase their income statement. After this, retail investors will have to provide their tax returns to open a trading account. The SEC’s secretary in general Ruenvadee Suwanmongkol presented this opinion. This discussion took place in her interview on Friday. Thailand has licensed only six exchanges to trade in crypto.

The rule suggests, only those with the necessary knowledge should invest in crypto. Regulators can ensure this by screening every investor interested in trading. After this, investors are in deep trouble as there are many not eligible to trade. Now they have to opt for licensed finance managers to invest in cryptocurrencies

She also stated, most of the investors are partially young including teenagers & students. Hence, it’s crucial to regulate domestic exchanges. Ruenvadee also agreed that more and more people have started investing in cryptos. But was against such decisions due to its enormous risk and volatility.

Why is Thailand Planning to regulate Crypto?

After the country tackled the Coronavirus pandemic. It has faced huge losses due to the falling hospitality industry. Not to forget most of the tax revenue generated in the country was from its hospitality industry. Thailand is the 2nd largest economy in Asia growing steadily in the crypto market. During this, Bitcoin drew even more attention. Soon after the coin crossed its $1 Trillion-mark last week.

Ruenvadee also said that the total revenue of trading platforms tripled in January. In December it was around $700 Million that raised to $2 Billion in January alone. Data provided by the SEC suggests that 90% of that trading revenue came from Thai citizens.

After this, many official authorities are planning to regulate the currencies increasing outbursts. Thailand is also among the list of countries that are against crypto. Therefore, they want to bring out the riskier side of the currency.

Other important details from the Interview

These rules will be out in the coming week by Thai regulators. After which a public hearing will happen to inform all the citizens about this amendment. This hearing will occur in the first week of March’21.

SEC’s secretary in general, Ruenvadee Suwanmongkol had some interesting things to share. She said Thailand will also notice its first crypto coin developed by a local company. And revenues generated from property rental services will back the token, she said.