Noting that cryptocurrencies are highly volatile and speculative, Thailand’s Prime Minister Prayuth Chan-ocha, has cautioned investors about investing in cryptocurrencies, urging them to be cautious with their investments.
Soaring Interest In Cryptocurrencies
The Prime Minister’s office made the statement amidst growing concern about the number of young people investing in cryptocurrencies, with investors hoping to get rich quickly. Deputy Spokeswoman for the Thai Prime Minister’s Office, Ratchada Thanadirek, revealed the growing concern from the Prime Minister.
The warning comes shortly after individuals in the Thai workforce have flocked to cryptocurrencies, thanks to their stunning returns in a short amount of time.
Not Considering The Risks
The prime minister urged investors to exercise caution when investing in cryptocurrencies, pointing out to their high volatility and speculative nature while also drawing attention to the fact that they do not have any supporting fundamentals.
He also urged investors to understand the risks involved when investing in cryptocurrencies and be thorough in their research before deciding which cryptocurrency they will be investing in. He also advised investors to invest with a service provider that has been licensed by Thailand’s Security and Exchange Commission (SEC).
“The prime minister is glad that the new generation is interested in investing. But all investments are risky. Young people of the new generation, including parents, are encouraged to study data and learn before investing every time to understand the risk characteristics of the investments...Assess yourself whether you can accept the risks that may arise, including checking that the service provider is legit. Don’t be fooled by advertisements by any companies to invest in digital assets.”
Rapid Growth In Investors And Investment Services
Data from Thailand’s Security and Exchange Commission (SEC) shows that at present, there are 1.49 million digital trading accounts. Out of these, over 311,000 accounts are active accounts that have an average daily trading volume of 6.6 billion baht, or around $198 million. 3% of traders are under the age of 20, while 47% of the traders are under the age of 30.
Investment firms have also seen a surge in growth, with several of these firms not having a license to operate in the country, which is what prompted the Prime Minister’s appeal. Using unlicensed services would mean that investors are not protected by law.
Thai Tourism Authority Considering Utility Token
Thailand’s Tourism Authority (TAT) has revealed that it is considering launching a utility token, the TAT coin, to attract cryptocurrency holders and investors to the country. The TAT coin would act as a digital medium enabling the easy transfer of vouchers while also allowing operators in the tourism space to access more liquidity.
The TAT coin is still under consideration, with the Tourism Authority having to consider the necessary regulations before launching the token. Under the initial concept, the TAT coin is not being looked at as a trading mechanism.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.