Following the crash of crypto lending platforms in the summer of 2022, Thailand’s Securities and Exchange Commission (SEC) intends to take drastic measures.
The Thai Securities and Exchange Commission intends to prohibit cryptocurrency platforms from providing or supporting digital asset depository services.
The regulator wants to make it illegal for “digital asset business operators” to offer any staking or lending services in order to protect traders and the general public from the “risks of such transaction providers.”
The proposed ban addresses several critical issues.
It will make it illegal for operators to accept deposits of digital assets with the promise of returning funds to depositors—even if those funds come from marketing budgets rather than the rising value of the assets.
During the broader market collapse this summer, cryptocurrency lending platforms found themselves in significant jeopardy. Companies such as Celsius Network and Voyager Digital halted their withdrawals before declaring bankruptcy.
Zipmex, another cryptocurrency exchange, froze withdrawals in July, citing a “combination of factors beyond [its] control.”
The SEC filed a police report in September after accusing the crypto exchange and its co-founder, Akalarp Yimwilai, of violating local regulations.
Authorities claim that Zipmex violated the country’s Digital Assets Act by failing to provide information on digital wallets and cryptocurrency transactions.
Starting in October, the SEC will also impose strict advertising regulations on cryptocurrency companies doing business in the country.
Companies will be required to limit cryptocurrency-related advertising to “official channels,” such as their websites, and to provide the SEC with information on all advertisements and spending, including the use of social media influencers and bloggers, and their terms and conditions.
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