As the virus was continuing its spread across the globe in early March, the country saw the full launch of Huobi. The exchange gives full fiat access to currencies including Bitcoin, Ethereum and Huobi Token. It received its Digital Assets Licence in 2019. More recently, it received full clearance to operate from the Securities and Exchange Commission.
This is fully in line with the country’s commitment to cryptocurrencies in general. In fact, it’s one of relatively few countries in the world in which they have been officially recognized. The reason for this interest is simple. The authorities believe that cryptocurrency businesses may contribute greatly to the economy by offering future employment opportunities.
However, despite the launch, many people are advising caution. Already volatile, cryptocurrencies have been seen to experience even greater shifts in value against the backdrop of increased global uncertainty. As the biggest single cryptocurrency, it’s logical that Bitcoin is the one whose fortunes are being most closely followed. And the double-digit falls between February and March mean this scrutiny has intensified. Arguably, one of the founding purposes of Bitcoin was that it would be a safe haven in times of economic uncertainty. But in the current circumstances, some observers are expressing doubts that this is the case.
That said, cryptocurrencies are available to trade on a 24/7 basis. This means that, unlike traditional markets, they are arguably less exposed to volatility over the weekend. The same can be said of anyone investing or trading in them. Some platforms have begun to allow for market trading at the weekend on shares indices in addition to forex and cryptocurrency markets. This proves the importance of being able to make decisions and take actions on the spot when trading. At this time, all these markets seem to be in a state of constant flux. One outcome of that could be that the tendency for trading to be concentrated during the working week from Monday to Friday will slacken. It is therefore significant that cryptocurrencies have always been available to trade in this way.
Indeed, the Thai authorities seem to be sticking by their commitment to cryptocurrencies. It is believed that they are planning to make several changes to the laws governing the way they are traded. This move was first discussed last year and comes in the wake of just five companies applying for licences and authorization to trade. That will have been a source of great disappointment to the financial authorities. What these changes will be is not known. It is equally hard to guess whether national and global economic conditions will also have an effect on them.
But it is certain that, as the world emerges from the restrictions forced upon it in the early months of 2020, there will be a great deal of economic ground to make up. Whether Bitcoin, and cryptocurrencies in general, will have a valuable role to play in the process, only time will tell.