Thai regulators allow local securities firms to launch bitcoin futures

nBankruptcy commentary: In many Asian countries vying to monitor the encrypted currency environment, Thailand seems very receptive to this new thing, the positive attitude is quite surprising. Thai regulators have allowed a securities firm to launch bitcoin futures products locally to serve experienced investors. However, the government has not forgotten to warn people to take notice of the risks involved in the market and advise them to first learn the relevant knowledge.n
nTranslation: Inan
A report this week in the Bangkok Post said that the Securities and Exchange Commission of Thailand has declared that the first Bitcoin trading service in Thailand to be launched by a securities firm is legal but requires investors to be aware of its high risk.n
According to Phillip Securities Thailand, investors will be able to participate in the Bitcoin market through a transnational global derivatives exchange. Thailand’s market regulator agreed that the move was legal and could move on. Last month, CBOE and CMEO, the big US exchanges, have launched similar futures contracts, though other countries have not seen the product yet.n

Low See Kiong, the company’s Managing Director, said in a press release:n
n”The move by CBOE and CME to use Bitcoin as a base asset will increase the acceptance of Bitcoin futures because they have a reliable payment system and are subject to regulation by the U.S. Securities and Exchange Commission.”n
nHe added that the futures product was introduced to experienced investors who did not want to buy cryptocurrencies directly from a crypto-currency exchange or a card-broker.n
Global head of Phillip Securities Thailand’s branch told The Bangkok Post that customers who want to trade Bitcoin futures must apply for the company’s global derivatives services which will allow them to operate in 15 global futures markets including CBOE and CME) for futures trading. However, investors need to deposit funds to cover their investment profits, the transaction will be quoted in dollars. On the margin, he added:n
n”In principle, investors should be prepared to cushion the effects of price changes, which may be less buffered due to different personal risk management, for example if they have a strict policy of cessation of losses, the buffer may be lower than 10%. “n
nThailand has a major cryptocurrency exchange that offers direct exchange of bitcoin and ten other types of coins with legal currencies, as well as allowing some less known coins to be exchanged for bitcoin. Thai Prime Minister Payut Chan-ocha recently warned against cryptocurrency trading and advised the public to be knowledgeable about the area before getting involved.n

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