After a bitcoin selloff saddled retail investors with significant losses and brought down businesses, Thailand aims to tighten supervision of digital asset companies, Bloomberg reported citing the country’s top regulator.
What happened: Most current rules governing digital assets were passed in 2018, but the Securities & Exchange Commission is looking to modify them, according to Secretary-General Ruenvadee Suwanmongkol.
She stated, without getting into specifics, that proposals include stricter requirements for the management and licensing of cryptocurrency custodians.
Why It’s Important: “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.”
Plans to increase oversight come as one of the country’s regulated cryptocurrency exchanges, Zipmex (Thailand) Ltd., and its regional parent this week stopped accepting withdrawals, joining other crypto companies in a liquidity crisis after the collapse of Celsius Network Ltd. and Three Arrows Capital.