Thailand’s government is concerned about “excessive speculation” in the kingdom’s booming crypto trading market.
Finance Minster Arkhom Termpittayapaisith fears the growing speculative mania could have a disastrous impact on Thailand’s capital market, according to a Bloomberg report.
The minister expressed his concerns in a speech at a capital market conference on Thursday.
Termpittayapaisith pointed to a huge increase in trading activity that pushed the crypto volume on the country’s regulated exchanges to 65 billion baht (US$2.17 billion) in January.
The total trading volume recorded in December 2020 was approximately 19 billion baht – about a third of the figure for January 2021.
The minister said, “Cryptocurrencies have enormous risk. Risk awareness will help those investors in avoiding excessive speculation on those assets.”
Thailand’s Securities and Exchange Commission (SEC) has warned investors to exercise caution and steer clear of unregulated markets.
Crypto trading in Thailand is highly regulated by government agencies, which closely monitor activities on exchange platforms.
Thai regulators ordered Bitkub, the country’s top exchange, to suspend operations in January following a number of lengthy outages. It was later permitted to reopen after demonstrating that it could meet the SEC’s requirements.