There are reports that the association of securities firms in Thailand is set to jointly launch a new cryptocurrency exchange as there is an increase in retail and institutional interest in crypto trading.
The Association of Securities Companies (ASCO) is testing the waters of launching a joint cryptocurrency exchange, according to reports from the Bangkok Post.
A couple of securities firms are planning to jointly submit an application for a crypto exchange license from the regulator to reduce operation costs and join on information sharing, ASCO chairwoman Pattera Dilokrungthirapop disclosed.
As a matter of fact, she revealed that ‘many member securities firms’ have shown interest in entering the cryptocurrency industry to operate ‘initial coin offering (ICO) portals and crypto exchanges including becoming brokers and dealers in digital asset trade.’
Even though a securities business license permits industry firms to become cryptocurrency asset brokerage or dealer, the absence of an investor-asset preservation or custody system different from the firm’s own assets sees the association competing to launch a licensed joint crypto exchange.
These traditional securities firms are more attractive compared to new exchange operator for crypt investors, Dilokrungthirapop argued, showing confidence “that investors will prefer trading with us” after drawing parallels between securities trading and digital asset trading. “Investors can trust our trading system, which has secured asset preservation,” she told the Bangkok Post.
Additionally, the chairwoman revealed that the association would consult with the Securities and Exchange Commission (SEC) on ‘potentially allowing’ securities firms to provide additional services in an increasing foray into the cryptocurrency business.