The Securities and Exchange Commission (SEC) of Thailand stated that bitcoin futures trading service, offered by local brokerage firm Phillip Securities (Thailand) Plc, does not break rules. But SEC urged investors to exercise caution due to high risk of investments in cryptocurrency related instruments.
The mentioned futures are traded on the Chicago Mercantile Exchange and CBOE Futures Exchange, which are under the supervision of the US Commodity Futures Trading Commission (US CFTC). Also, both CME and CBOE adhere to International Organization of Securities Commissions (IOSCO) standards.
Since the product is already supervised by qualified regulators, the major worry for Thai traders is not fraud or money laundering. The concern is the extremely high risk due to high volatility of bitcoin, the underlying asset, and the leverage of the product, which could generate higher or lower profits or losses than the primary product.
“Investors have to consider their own risk susceptibility. If they do not comprehend or are not ready [to invest in bitcoin], then they should avoid it. Brokerage firms that advise clients on investment have to take into account clients’ financial condition, understanding, and risk susceptibility,” said the SEC of Thailand.