27 February 2021
Recently, the Stock Exchange of Thailand (SET) made an announcement of the launch of a new trading platform for asset-backed digital tokens in the second half of 2021. However, the exchange has denied to include cryptocurrencies on the platform because of their risky nature and potential involvement in money laundering activities.
As per the report by The Bangkok Post, the SET gave the reason for not adding cryptocurrencies as they don’t meet the criteria for listing on its trading platform and the inclusion will harm the SET’s image as a high trust exchange.
The exchange has listed three requirements for tokens to get listed and it includes the requirement to have an underlying asset that investors can analyze on value. The second is that the token must support the society and environment. The third is that they must contribute to the economic activities in the region.
The Executive Vice-President at SET, Kitti Suthiatthasil, stated “Cryptocurrencies like bitcoin are currently used in some countries which are experiencing high inflation and currency fluctuations such as Zimbabwe and Venezuela as an equivalent of fiat money. Another reason why the SET is not interested in cryptocurrencies despite their recent surges is that they can easily be used for money laundering. If people are caught laundering money on the SET digital asset platform using cryptocurrencies, it could harm the SET’s reputation and overall investor confidence.”
Messari's research states that Asia reports 40% of the market cap of the top 20 cryptocurrencies. It plays a crucial role in the growth of the crypto market as Chinese companies mine more than 50% of crypto. Recently, there is a rise in digital assets in Japan, Korea, Singapore. It looks that despite Thailand’s criticism against cryptocurrencies like Bitcoin and Ethereum, the country is planning to provide a trading platform for regulated digital assets. Suthiatthasil added, “We just buy the future and hopefully the digital asset marketplace will grow as expected.”