Young Thai crypto investors ‘doomed’ by get-rich-quick idea: NESDC
Young Thais investing in cryptocurrencies risk big losses due to their get-rich-quick attitude and lack of experience and knowledge.
That was the warning issued by the National Economic and Social Development Council (NESDC) in a report on Thailand’s outlook in the second quarter.
The agency said young Thai investors tend to base their investment decisions on instinct rather than analysis.
Mahidol University’s College of Management (CMMU) study found that Gen Z invests in cryptocurrencies because they want to get rich quick.
It said this attitude turned some people into millionaires, but many crypto investors also made huge losses quickly.
Almost 45 per cent of Thai crypto investors have no knowledge or understanding of the market, said the NESDC report. This lack of knowledge, particularly among young investors, makes them more prone to making wrong decisions, it warned.
The CMMU study also found that almost 65 per cent of Thai crypto investors traded through online platforms based overseas to avoid paying taxes in Thailand.
The NESDC report warned that crypto investors should opt for reliable platforms to avoid compromising their personal information.
The government recently asked the Thai SEC to lead an overhaul of Thailand’s crypto regulations after local exchange Zipmex halted withdrawals and entered bankruptcy protection. Despite a global meltdown that saw the crypto market lose about US$1 trillion in May and June, Thailand is still a hotbed of digital currency trading in Southeast Asia and has more than 20 SEC-registered digital asset operators.
Credit The Nation