The Central Investigation Bureau (CIB) in Bangkok disrupted the Fintech Festival Thailand 2023, a major event in the fintech industry, by raiding the venue and detaining several individuals. The CIB’s action reflects Thailand’s strict regulation of financial entities and digital asset service providers.
How the CIB Interrupted the Fintech Festival Thailand 2023
The Fintech Festival Thailand 2023, which took place from September 27 to September 28 at the Royal Paragon Hall in Bangkok, was a networking event that covered a wide range of fintech topics, such as banking, payments, personal finance, digital assets, Web3, blockchain, and investments.
The event featured speakers from leading fintech companies, such as Bitkub, Webull, Binance, and CoinDesk.
However, the event was interrupted on the first day when the CIB raided the venue and attempted to detain numerous individuals present.
According to reports, the CIB targeted forex-binary option booths that the event’s main organizers sponsored. Forex-binary options are a type of financial derivative that allows traders to bet on the price movements of foreign currencies.
The CIB claimed that these booths were operating illegally and violating the Securities and Exchange Act.
The CIB’s intervention caused panic and confusion among the attendees and speakers, some of whom tried to flee or hide from the authorities. The event was temporarily suspended and resumed later with increased security measures.
How Thailand is Protecting Investors and Preventing Risks in the Fintech Sector
The CIB’s decisive action at the festival echoes a larger narrative of regulatory caution extending beyond Thailand’s borders.
Countries worldwide are grappling with finding the right balance between fostering fintech innovation and ensuring investor protection— and Thailand is no exception.
Financial regulators in Thailand, including the Securities and Exchange Commission (SEC), have been proactive in regulating financial entities and digital asset service providers.
The Thai SEC released new guidelines, effective from July 31, 2023, to mandate explicit risk warnings for customers. The regulatory body banned the use of customers’ funds for lending or investment.
According to the SEC, this proactive approach intends to cushion investors against high-risk crypto-trading and investments. The rules come after a large-scale crypto lending crisis that occurred during the bear market of 2022.
A number of crypto lending companies had amassed billions of dollars in customer deposits by offering attractive returns but failed to deliver during the bear market.
Prominent lending firms like Celsius and BlockFi went bankrupt, leaving investors with funds stuck in lengthy bankruptcy proceedings.
The SEC’s new guidelines aim to prevent such incidents from happening again and to protect investors from potential frauds and scams in the fintech sector.
The SEC also requires financial entities and digital asset service providers to register with the regulator and comply with anti-money laundering and consumer protection laws.
How Fintech Entities and Digital Asset Service Providers are Responding to the Regulation
The SEC’s new guidelines have received mixed reactions from the fintech industry. Some fintech entities and digital asset service providers have welcomed the regulation as a way to enhance their credibility and legitimacy in the market.
Others have criticized the regulation as too restrictive and stifling for innovation and growth.
Some fintech entities and digital asset service providers have also decided to exit or suspend their operations in Thailand due to regulatory pressure.
For example, Gemini and Binance, two of the world’s largest crypto exchanges, announced that they would stop offering their services in Thailand earlier this year.
They cited their inability to meet the requirements imposed by the SEC as the reason for their departure.
However, some fintech entities and digital asset service providers have also expressed willingness to cooperate with the regulators and comply with the new guidelines.
They hope that by doing so, they can contribute to developing a more transparent and secure fintech ecosystem in Thailand.
