The future outlook for cryptocurrencies in Thailand is promising after SCBx Group acquired 51% of Thailand's leading digital asset exchange, Bitkub Online Co, with a huge investment value of 17.85 billion baht.
The deal could become a major driving force for cryptocurrency trading in Thailand.
Thailand was ranked 11th of the countries and economies with the greatest interest in crypto in 2021 on the Crypto Interest Index conducted by Coinformant, a leading crypto exchange in Australia.
The ranking criteria are based on people's engagement in cryptocurrency, the amount of cypto ownership, and articles and searches over the last 12 months.
Indonesia ranked top on the index with a 1,772% increase in engagement.
For Thailand, more than 3.6 million people are estimated to own cryptocurrencies and total engagement surged 435% over the past 12 months.
This has sparked concern by Prime Minister Prayut Chan-o-cha who recently asked parents to warn their children about the risks of cryptocurrency investment as a number of young people were found to be entering the market.
As Siam Commercial Bank, one of Thailand's five largest commercial banks, is under its umbrella, the SCBx Group's investment will boost the confidence of new entrants to the cryptocurrency market which is a high-risk speculative exchange.
The investment also reflects that the fact the country's major financial and tech group views cryptocurrency's outlook as promising.
Bitcoin's rally to trading above $61,000, up more than 100% this year, and leading a rally of other digital coins, is attracting many new investors.
Exponential growth of the cryptocurrency market over over the past few years has posed major challenges to fiat currencies and the conventional monetary system.
Cryptocurrency contains levels of volatility which could make an investor lose hefty investment sums suddenly.
Early this month, the value of a Squid coin, a digital coin named after the Netflix hit series Squid Game, collapsed from a high of more than US$2,800 to zero after the coin's unknown creators cleaned out some $3.3 million in funds, a manoeuvre known as a "rug pull".
The cryptocurrency system is quite new and not all investors understand how it works and it is not legitimised by the government or financial institutions.
Governments in various countries are concerned whether the wider use of cryptocurrencies will cause major instability in the financial system and they are trying to regulate them.
Still, regulators are aware that it is impossible to derail the rise of cryptocurrency transactions.
Several central banks, including the Bank of Thailand, are trying to develop their own digital money, the so-called Central Bank Digital Currency (CBDC), to facilitate payments for businesses.
In Thailand, cryptocurrency trading is still in its infancy and full of risks and opportunities.
It will grow rapidly, drawing many new investors, both corporates and individuals. Many investors lack sufficient knowledge about the innovation.
The government and regulators have a duty to find measures to address the mounting risks while also ensuring they don't stifle trading activity.
They should pay attention to educating people about cryptocurrency, its opportunities and risks, as it is no longer irrelevant to people's pockets.