BANGKOK, 18th February 2018 (NNT) Investment in digital cryptocurrency has high risk as there is no existing law to protect investors from possible damages, and that investors have no legal way to file complaints for compensation, says SEC.

The Securities and Exchange Commission (SEC) advised investors to refrain from making investment in digital currencies as the practice is of high risk, with chances of being involved in a fraudulent scheme.

SEC Secretary-general Rapee Sucharitakul said currently there are more fundraising through invitations for people to invest in the digital assets by launching the Initial Coin Offerings (ICOs). Investors who do not fully understand the scheme may face high losses.

At present, Thailand has no law governing cryptocurrencies and ICOs, making the investment contract invalid in terms of legality, leaving investors with no legal protection in case of damages occur.

The SEC is looking into ways to provide advice on these types of transaction and fundraising activity. The authority is looking for ways to allow this type of fund raising and transaction in a transparent manner under control of state agencies.

However, the SEC chief warned that such investment control can minimize only parts of the total risks and investors will still have high business risks from heavy fluctuation of the digital currencies, cyber-attacks, and the fact that investors are unlikely to be able to seek compensation from their losses.

National News Bureau Of Thailand | No governing law makes digital currency investment risky: SEC