Cryptocurrency adoption is fast growing in Thailand, with crypto volumes on licensed exchanges rising while peer-to-peer platforms continue to struggle. Thai regulators admitted to the surge in cryptocurrency trading volumes and expect more growth in the future.
Crypto trading volume on exchanges up by nearly 600%
Cryptocurrency adoption is on the rise in Thailand, with the country’s Securities and Exchange Commission, or SEC, revealing that cryptocurrency trading volumes on exchanges are up by nearly 600% since November.
According to a report by Bloomberg earlier today, the SEC-published data shows that combined volume across licensed Thai crypto exchanges went from $574.5 million in November to $3.96 billion in March.
The growth is massive as more people took advantage of the ongoing bull cycle and institutional adoption to enter the cryptocurrency market. Atichanan Pulges, co-founder of top Thai exchange Bitkub, while speaking to Bloomberg, stated that trading volume on his platform surged by roughly 40% between January and February. According to Pulges, Bitkub accounts for nearly 90% of local trade activity and services 300,000 customers.
However, only the licensed crypto exchanges in Thailand are experiencing such huge trading volumes. The peer-to-peer exchanges such as LocalBitcoins and Paxful have seen their trading volumes decline, from $950,000 to roughly $600,000 over the past few months. Since Thailand now has licensed crypto exchanges, most traders and investors prefer to deal with them rather than the P2P platforms.
SEC to introduce training for inexperienced traders
In an effort to limit financial losses in the cryptocurrency market, the Thailand SEC proposed the introduction of a training course and test. This latest development will make it tougher for inexperienced traders to speculate and trade cryptocurrencies.
Furthermore, the Thai SEC also wants to introduce a $32,000 minimum annual income requirement for prospective cryptocurrency traders. These regulations are targeted at making the Thai crypto market saner and safer for the inexperienced traders.