Cryptocurrency is a financial innovation that is exposed to high volatility. Investment in this digital asset thus requires knowledge and understanding and a risk profile that is not so sensitive to investment loss. The SEC is therefore proposing to specify the qualifications of cryptocurrency investors to ensure proper investor protection mechanism in consistent with the level of risk related to the product.  

In essence, the public consultation is on the proposed qualifications of cryptocurrency investors and the proposed requirement for a knowledge test before services on digital asset investment can be given. These criteria would be part of the consideration for laying out appropriate regulations. For example, (1) Investor qualifications related to financial condition and/or knowledge and understanding of cryptocurrency. In case of unqualified investors, investment through a licensed digital asset fund manager would be allowed, and (2) Digital asset business operators would be required to conduct a knowledge test on investors before providing services to them.  

The consultation paper is available at https://bit.ly/3knvOOk. Stakeholders and interested parties are welcome to submit comments via the SEC website or email: ekarit@sec.or.th and chawin@sec.or.th. The public hearing ends on 27 March 2021. The SEC will also conduct a live talk to gather public opinions on the matter via SEC Facebook Page on 24 March 2021, 2pm – 4pm.

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