Thailand Plans to Amend Regulations Governing Crypto Assets

blockchain.news:

Thailand's crypto regulation is under scrutiny as the government plans to amend digital asset rules.

The country's regulators said that action needs to be put into place as a recent cryptocurrency selloff saddled retail investors with large losses and toppled several companies.

Existing digital-asset regulations in Thailand were introduced in 2018; however, they require amendment from the Securities & Exchange Commission (SEC), said Secretary-General Ruenvadee Suwanmongkol.

Suwanmongkol added that stricter qualifications for managing and licensing crypto custodians would be part of the amendment proposal. Specific details are yet to be released.

“The extreme volatility of digital-asset prices has spurred the urgent need for improved supervision,” Ruenvadee said in an interview. “Our main focus will be to provide more protection for small investors, some of whom are putting most of their savings into these assets.”

The regulatory body was motivated to take action after Zipmex (Thailand) Ltd., one of the country’s licensed cryptocurrency exchanges, and its regional parent halted withdrawals this week, according to Bloomberg.

The company faces a liquidity crunch similar to the bankruptcy of Celsius Network Ltd. and Three Arrows Capital.

According to Bloomberg, Chief Executive Officer Akalarp Yimwilai said Wednesday that Zipmex (Thailand) is talking with potential investors to raise funds for a “bailout.”  On its Facebook page on Thursday, the company announced that it has $48 million of exposure to Babel and $5 million with Celsius.

Zipmex Thailand’s woes are an individual case stemming from problems at a related business, Ruenvadee said. 

Another crypto woe that has led to the tightening of regulations is a case that