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June 2022
AAM Magazine
June 2022
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Thailand wants crypto traders to have at least 1 million baht annual income

According to a draft proposal by Thailand’s Securities and Exchange Commission (SEC), traders would need to have annual income of 1 million baht (US$32,970)
By Goh Thean Eu   
March 1, 2021

Thailand’s securities regulator wants to restrict cryptocurrency trading to those earning at least 1 million baht (US$32,970) annually, or have a minimum net worth of 10 million baht excluding the value of their homes.

They should also have at least two years of experience trading stocks and futures before they are allowed to trade cryptocurrencies such as bitcoin and ethereum, according to a draft proposal from the Thai Securities and Exchange Commission (SEC).

“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 regulator says in a statement on February 26.

Thailand’s gross development product per capita was $7,806 in 2019, according to World Bank data.

Thailand has begun to tighten control over cryptocurrency trading. The proposal to restrict trading to higher income earners and high-net-worth individuals comes after the SEC said on February 15 that digital asset fund managers who advise investors and manage their portfolios will now have to apply for licences to continue operating. There was no licence requirement previously.

The SEC, which is seeking public feedback on the new proposal, notes that those who don’t meet the proposed income or net worth requirements can still invest in cryptocurrencies through a licensed digital asset fund manager, or purchase stable coins, which are digital currency backed by assets such as fiat money, government bonds and gold.

The SEC is expected to hold a talk on the proposal on March 24. Public consultations end on March 27.