Get to know “digital assets” before investing.
On October 29, 2021, Ms. Jomkwan Kongsakul, Assistant Secretary-General, Fundraising Group, Office of the Securities and Exchange Commission (SEC) revealed that when talking about “digital assets” or Digital Asset, it is a rather broad term, which actually Then digital assets consist of “cryptocurrency” and “token”.
for cryptocurrencies It is commonly used to buy goods and services, simply referred to as a medium of exchange. and some are used as alternative assets. There is a speculative investment. Because of low interest rates and high liquidity, all investors search for yield or use cryptocurrencies as the soft value of their assets.
“These cryptocurrencies have price movements in contrast to traditional assets such as stocks, bonds, so they are a very good diversification of your portfolio.”
There are two types of digital tokens.
for digital tokens It is divided into Utility token and Investment Token, which are different. Utility tokens are divided into 2 types: 1.Utility token ready and 2.Utility token not available.
For Utility tokens available, it will not be a fundraising event. Instead, it is a coin that was created to show rights to finished goods and services. In simple words, it’s like a hotel voucher that buys paper in exchange for a hotel stay. But this part is used as a token to exchange goods and services instead.
But for Utility tokens not available, that means goods and services have not yet been created. Coin sellers come out to raise funds to develop goods and services. Therefore, it is considered a fundraising condition.
Investment Token is similar to a fundraising tool. Acting like an IPO, at the beginning of Oct. 2021, SPV77 Co., Ltd. issued a token to raise funds for the purchase of the building. and renting out the building by dividing the rent into a return for investors
Digital asset feature “Trade 24 hours a day, 7 days”
Ms. Jomkwan continued that the feature of the digital asset product will be traded 24 hours a day, 7 days, around the world. real time delivery It’s not like stocks have to wait for the market to open. And it takes 1-2 days to deliver.
In addition, the payouts are varied. will be paid in cash or rewards or as a right to exchange goods and services The format is quite flexible.
And tokens can be made into subunits. allowing investors to use low investment Unlike stocks, for example, the share price is 400 baht. It takes 400 baht to buy.
Crypto account openings grow 5X in 3 years
Of course, digital assets are in half. Opportunity comes with risks Although now I see a good opportunity This makes people have a very high demand for this type of assets around the world. Many countries, new generations have started to turn their attention to investing in digital assets.
In Thailand, most digital asset investors are natural persons. The number of accounts opened has increased exponentially since 2018 with the digital asset business decree, later in 2019, the account balance was over 100,000 accounts, later in the end of 2020, there were more than 200,000 accounts, and the latest year 2021 has exceeded 1,600,000 accounts. If compared to opening a stock account over the course of 20-30 years, there are still only 1,800,000 accounts. The number of developments is quite different.
risk warning High volatility – difficult to measure intrinsic value
Ms. Jomkwan continued that at present, no one knows what the real value of cryptocurrencies is. But people who trade because they are satisfied with that, see the world trend and the market is open 24 hours. There is no price ceiling. (Price depends on demand – supply from around the world) makes the price fluctuation very high. Invest 1-2 days, money in the portfolio may disappear at all.
And the world trend in many superpowers comes out like a semi-ban on Bitcoin because they are worried that there will be problems for the financial stability of the country. which is a factor that depresses the price of these digital assets as well
SEC and BOT discuss digital asset control
Currently, the Digital Asset Act Directing and developing both cryptocurrencies and digital tokens. In terms of cryptocurrencies used to exchange goods and services no fundraising There is only trading in the secondary market when the SEC takes over the supervision. will go into the supervision of trading in the secondary market, namely Control operators such as brokers, dealers, fund managers, consultants that have served and are ready for work systems and personnel. meet the standards Does the SEC determine?
However, there are currently some digital tokens that are similar to fundraising, which are usually regulated under Securities Act by what the SEC is working on is updating Securities Act to cover the fundraising Whether it’s fundraising in the digital world or the traditional world. in order to be supervised in the same way
Meanwhile, from Mr. Arkhom Fill Pittayapaisith Minister of Finance has given importance to the supervision of digital asset investment Therefore, the relevant departments including the SEC, Bank of Thailand (BOT) have been assigned to work together to lay out clear guidelines to support future business growth.
“Some people will use cryptocurrencies in half. A medium of exchange. Simply put, people don’t use Thai baht. but use bitcoins to buy goods and services This may affect the government’s monetary policy may not be effective. This is why national banks around the world have an observation on this matter. Therefore, we need to continue to work together and discuss.”