Thai SEC Warns New Crypto Investors That They Should Be Careful

The Securities and Exchange Commission in Thailand is concerned about crypto investor ignorance since cryptocurrency trading volume has soared to 700 to 800 billion baht over the past 10 months. Zipmex Thailand’s chief executive predicted that trading will reach 1 trillion baht by the end of 2021.
An executive from Zipmex recently told the PostToday Cryptocurrency Forum 2021 that more than 1.1 million people are now trading crypto in Thailand. A concern of the SEC is that crypto trading has now gone beyond experienced and knowledgeable investors, gaining mass appeal, and attracting amateur investors more prone to pitfalls and less aware of the dangers of cryptocurrencies.
Inexperienced traders are more likely to fall victim to cryptocurrency scams like fake digital exchanges that appear to be licensed and official. Only 11 legally recognized companies in Thailand are allowed to facilitate trading services for digital assets like cryptocurrencies.
The SEC is also concerned that new investors are rushing into crypto investments without a solid understanding of the investment process. People without any investment experience may be tempted to invest blindly in crypto markets, at risk of losing money, by stories of big jumps in the volatile market.
Before investing in the cryptocurrency market, traders should thoroughly educate themselves on markets and products. Assistant secretary-general of the SEC urges people to do their homework.
“We encourage crypto traders to check the credibility of a company and study the feasibility of cryptocurrency trading before opening an account.”
Investing in unauthorized or foreign digital exchanges is not protected in Thailand, which only permits trades through domestic approved exchanges. The investor is responsible for all financial damages.
45% of new young traders invest in cryptocurrency with borrowed funds, according to a UK study.

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