SEC warns the public of risks to investments in crypto-mining businesses
The Securities and Exchange Commission on Wednesday urged the public to exercise utmost caution when deciding to invest in crypto-mining businesses, warning that such enterprises are risky and not monitored by the SEC.
The watchdog posted the warning on its website, saying Thai investors must take several risks into account.
The SEC said it had to issue the warning because invitations to Thais to rent or buy equipment or computation processing power for cryptocurrency mining are being publicised via several media channels with promise of high returns.
The SEC said such investments would risk losing money because of fluctuations in cryptocurrency prices, high competition, degrading of equipment over time, and high power bills.
The watchdog also warned Thai investors that their personal information and digital assets could be stolen by hackers.
Worse still, scammers may use the business as front for their scams and misappropriate investors’ money without really investing in cryptocurrency mining.
The SEC said crypto-mining was not one of the businesses it monitored under provisions of the emergency decree on Digital Assets Business Operation, BE 2561 (2018).
The watchdog also noted that if the operators of crypto-mining businesses also sell digital coins or are engaged in the crypto-exchange business, they must first get approval from the SEC as required by the decree.
The SEC is now consulting with other concerned government agencies on how to supervise the digital assets business and provide better protection to Thai investors.
The agency also urged Thai investors to check the list of authorised digital assets exchange businesses on its website or use SEC Check First app to check the companies’ names.
Those who have questions about crypto businesses can call SEC Hotline at 1207 and press 2.
