Thai Stock Exchange Rejects Cryptonics

Thai Stock Exchange Rejects Cryptonics

The Thai stock exchange is planning to launch a trading platform for asset-backed securities, but has excluded crypto-currencies.

The Thai Stock Exchange (SET) announced yesterday (20 January 2021) that it plans to launch a trading platform for digital asset-backed securities in the second half of 2021.

The exchange completely rejected the possibility of including crypto-currencies because of their risky nature and potential involvement in money laundering activities.

See : Thailand Tackles Drug Profits Hidden in Crypto Currencies

According to a report by the Bangkok Post, the SET mentioned that crypto-currencies do not meet the criteria for inclusion on its trading platform and that the inclusion of these currencies will damage the image of the SET as a trusted exchange.

The exchange has defined three key requirements for the listing of securities on its platform, including the requirement to have an underlying asset whose value can be analysed by investors.

Secondly, the security must support society and the environment.

Third, it must contribute to the economic activities of the region.

Kitti Suthiatthasil, Executive Vice-President of the EETS, commented on the issue:

« Cryptocurrencies such as Bitcoin are currently used in some countries with high inflation and currency fluctuations such as Zimbabwe and Venezuela as the equivalent of fiat money.

Another reason why SET is not interested in crypto-currencies despite their recent surge is that they can easily be used for money laundering.

If people are caught laundering money on the EETS digital asset platform using crypto-currencies, this could damage the reputation of EETS and the general confidence of investors.

Cryptocurrency and Asia

Cryptocurrency and Asia

According to a report by Messari research, Asia accounts for more than 40% of the market capitalisation of the top 20 crypto-currencies.

Asia has an important role to play in the growth of the crypto-currency market, as more than 50% of the companies exploiting crypto-currencies are based in China.

The adoption of digital assets in countries such as Japan, Korea and Singapore has increased in recent years.

The latest announcement from the Thai stock exchange shows that despite its criticism of crypto-currencies such as Bitcoin and Ethereum, the country plans to provide a trading platform for regulated digital assets.

« We are simply buying the future and hope that the market for digital assets will develop as planned, » Suthiatthasil added.

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Thai Stock Exchange Rejects Cryptonics
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