Thai Prime Minister Cautions Investors Getting Into Crypto as Interest in Digital Assets Soars
The prime minister of Thailand has cautioned investors getting into cryptocurrencies, noting that they are volatile and highly speculative. Recently, interest in cryptocurrencies has soared as young investors in the coun...
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The prime minister of Thailand has cautioned investors getting into cryptocurrencies, noting that they are volatile and highly speculative. Recently, interest in cryptocurrencies has soared as young investors in the country discovered that they could make money quickly by investing in cryptocurrencies.
Thai Prime Minister Warns About Crypto Investing
Ratchada Thanadirek, deputy spokeswoman for the Thai Prime Minister’s Office, said Saturday that Prime Minister Prayuth Chan-ocha is worried about people investing in cryptocurrencies, particularly young investors.
The warning came as the prime minister learned that Thai people entering the workforce have flocked to invest in cryptocurrencies due to their spectacular returns in a short period of time.
However, the prime minister urged investors to consider the risks of investing in this asset class. He noted that cryptocurrencies have no supporting fundamentals, and they are highly speculative and very volatile.
He also asked parents to be cautious when opening trading accounts for their children, emphasizing that investing by minors must be supervised closely.
Furthermore, the prime minister urged investors to understand the investment risks and be able to accept all losses. They should do some research and consider investments carefully before making a decision. Most importantly, they should not be fooled by the hype and must select a service provider that is licensed by the country’s Securities and Exchange Commission (SEC).
Ratchada stated: “The prime minister is glad that the new generation is interested in investing. But all investments are risky.” She elaborated:
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,” she added.
Currently, data from the Thai SEC shows there are 1.49 million digital asset trading accounts, 311,000 of which are active accounts, with an average daily trading value of 6.6 billion baht ($198 million). Approximately 3% of traders are youth under 20 years of age and about 47% are under the age of 30.
Meanwhile, the number of investment services firms has also grown rapidly, some of which do not have a license to operate in the country. The prime minister further warned the public as well as crypto investors to be careful when using services that are unlicensed as they are not protected by law.
What do you think about the Thai prime minister’s warning? Let us know in the comments section below.
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