Surge in Crypto Trading Elicits Criticism From Thai Officials
(Bloomberg) -- Retail investors’ “excessive speculation” in cryptocurrencies may fuel instability in Thailand’s capital markets, according to Finance Minister Arkhom Termpittayapaisith.
Local retail investors have been shifting their savings into cryptocurrencies in search of higher returns, Arkhom told a capital market conference Thursday. Trading of cryptocurrencies on the nation’s licensed exchanges jumped to about 65 billion baht ($2.17 billion) in January from 19 billion baht a month earlier, the Securities and Exchange Commission said on its website.
“Cryptocurrencies have enormous risk,” Arkhom said. “Risk awareness will help those investors in avoiding excessive speculation on those assets.”
The finance minister joins the capital regulator in warning about a surge in cryptocurrency trading by Thai individuals. Thailand’s cryptocurrency exchanges have a large number of young traders and this is causing high volatility, Ruenvadee Suwanmongkol, the secretary general of the SEC, said Monday.
Still, authorities are open to new financial instruments including cryptocurrencies and other digital assets as companies’ new funding channels, Arkhom said.
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