A former Bank of Thailand director has warned about an imminent crypto crash. “A cryptocurrency bubble will emerge at the end of March when liquidity in the financial market drops,” he reportedly predicted.
Former Central Bank Director Warns Crypto Market Will Soon Crash
Former Bank of Thailand (BOT) Director Anusorn Thammajai reportedly warned that the cryptocurrency market will crash in a couple of months, the Nation reported Sunday. The ex-central bank director cautioned:
A cryptocurrency bubble will emerge at the end of March when liquidity in the financial market drops due to moves by central banks to taper quantitative easing and raise interest rates.
He noted that the first wave of the crypto bubble has already passed and many cryptocurrencies lost more than 40% in value this year.
The former Bank of Thailand director added that while cryptocurrency helps create a financial ecosystem in the digital economy, it also poses risks to financial systems. He further warned investors who hold risky assets to be extra careful in the second quarter this year.
In addition, Thammajai stressed that he supports the Thai government’s plans to tax crypto transactions and tighten the regulation of cryptocurrencies. He noted that illegal businesses have been utilizing cryptocurrency for money laundering and other illicit financing purposes.
Meanwhile, Thailand recently relaxed crypto tax rules, scrapping the 15% planned withholding tax. Last month, the Bank of Thailand, the Thai Securities and Exchange Commission, and the country’s finance ministry announced that cryptocurrency will be regulated as a means of payment.
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