Thai governments have announced that they have permitted 7 commercial entities to execute operations in cryptocurrencies.
In a statement, Thai SEC – The Securities and Exchange Commission of Thailand confirmed that Bitcoin Co. Ltd. (BX), Cash2coins Co. Ltd., Bitkub Online, Coin Asset Co. Ltd. & Group Co. Ltd. were able to function as a legal exchange of Crypto.
Additionally, the regulator has approved 2 traders of cryptocurrency – Digital Coin Co. Ltd. & Coins TH Co. Ltd.
Investors in Thailand can now trade with bitcoin futures listed on the Chicago Mercantile Exchange (CME Group) and the Chicago Board Options Exchange (CBOE). The country’s financial authorities say that these instruments should be offered in Thailand and in fact, a company is already offering them to its customers.
Bitcoin Futures in Thailand
It was mentioned on the Bangkok Post website that the Securities and Exchange Commission (SEC) has stated that Thailand’s first Bitcoin futures trading service to be offered by a securities firm is legitimate. But he urged investors to be cautious because of the high risks of operations.
As said by Phillip Securities TH., investors could consider Bitcoin through international derivative trading services. Market regulator within Thailand agrees that this movement is legal and can continue. Similar future contracts were provided last month by 2 major Chicago bourses: CME and CBOE, although products from other nations have yet to commence similar operations.
He also added that the futures were targeted at savvy investors who did not want to buy the currency directly in cryptomonads exchanges or unlicensed (informal) brokers.
Open to Transactions in Bitcoin
Phillip Securities TH is the head of the Global Market, also told to the Post Website of Bangkok that the investors wishing to trade futures in Bitcoin should relate to global derivatives of the company. That will be enabling them to do business futures in fifteen global future markets that include CBOE and CME.
However, customers will require a depositing fund to cover up their investments margin and their trading will be quoted in US dollars. In reference to margin hedges, he added:
At first, investors should prepare money as a buffer for the price movement around 20-30% above the margin. The buffer may be smaller for some, depending on the risk management of each individual.
For example: if they have a rigid policy to stop losses, the buffer may be less than 10%.
Thailand has one main crypto exchange that is offering other altcoins along with Bitcoin directly in fiat and some more unclear ones in Bitcoin. In addition, Board leader Prayut Chan-Ocha has recently warned of the cryptocurrency trading risk and directed that the investors be educated well before jumping into the trading.
Thailand has a primary crypto exchange that offers Bitcoin and ten other altcoins directly in fiat and other more obscure in Bitcoin. Board leader Prayut Chan-Ocha recently warned of the risks of cryptomonads and recommended that the public inquiry into the subject before undertaking any operations.
Is Crypto Trading Banned in Thailand?
According to information from various media, Thailand has banned the development and commercialization of virtual currencies whose paradigm is Bitcoin. The ban has arisen after the refusal of the Thai authorities to register a company that provides the servers to operate with Bitcoin.
However, the ban has yet not been confirmed and it is not into the force. After this decision taken by the Thai government, two major Bitcoin trading companies Coinmill and Bahtcoin remain open and waiting to know about their future. Its future, however, goes through its reconversion or restructuring. Thailand’s Security & Exchange Commission has announced regulations that come into effect later.