The growing need for cryptocurrency regulations by nations’ financial regulatory body has been a hot topic of debate recently in the Blockchain space. In general, analysts and enthusiasts believe that with proper regulations in place, many nations can adequately oversee the affairs of the cryptocurrency outfits in their country and will also be able to curb the growing menace of hacks and scam activities currently prevailing in the space.
Thailand Thai Securities and Exchange Commission, in a bid to get more involved in the affairs of cryptocurrency space in its terrain, has now required that all crypto asset, fund, and investment managers, should get a new license from 24th February 2021.
Thai SEC wants to handle crypto assets as regular assets
The new policy in place by the Asian country’s SEC now means that the previous licenses used to operate by the crypto service firm in the nation will be invalidated. The new license will now grant them trading eligibility in the country. The official report by the Thailand SEC explains that the cryptocurrency investment managers who are tasked with assisting individuals with cryptocurrency tailored business advisory services will be catered to under the new policy.
As things stand right now, the crypto fund managers are currently licensed, but regardless of the current license’s validity, it will expire on 24th February 2021. One of the aims of the Thailand SEC’s new policy is to increase the awareness of cryptocurrency trading in the country by classifying it under assets management policies, as the SEC believes that digital assets are also assets like stocks, bonds, and securities.
The new policy in place also seems to check crypto transaction activities. As crypto exchanges are now required to provide the SEC with details of every transaction of their customers, move touted to curb money laundering activities suspected to be aided by the country’s cryptocurrency space.
There is an urgent need for nations to regulate cryptocurrency activities
Several crypto analysts and enthusiasts have seemingly been debating on the need for many nations to adopt cryptocurrency and regulate the trading of digital assets, a move that will fully aid its adoption. Thailand is not the only country currently regulating cryptocurrency trading activities, as many nations have moved to do the same recently.
However, while a few of the regulations might positively affect the fortunes of the cryptocurrency industry, others have will negatively affect its trading and growing adoption. Nigeria, one of the countries in Africa that have fully embraced cryptocurrency, was dealt a huge blow last week when its Central Bank had informed the citizens that they could no longer trade cryptocurrency with Naira, the nation’s local currency.
That singular act had left many frustrated in the country, as analysts believe cryptocurrency adoption in Africa will follow a downward trajectory. However, the benefits of cryptocurrency regulations cannot be overestimated, as analysts believe it has more pros than cons.