After last summer’s crypto lending platforms crashed, the Securities and Exchange Commission of Thailand is currently in the process of taking a number of radical measures.
More Strict Regulations in Asia
According to a formal statement released by the Securities and Exchange Commission (SEC), it is pleased with the opinions of the advisory committee regarding the principle forbidding operators of digital asset service providers that pay returns to depositors from providing or supporting them.
During the discussion, it was agreed that it is reasonable to prescribe rules to prohibit digital asset business operators from providing or supporting services related to the depository of digital assets.
The SEC claims to protect traders and the general public from the risks associated with such transaction providers. It is important to ensure that returns are paid to depositors and loans are made (deposit taking & lending) in order to prevent problems that could arise if the service is misinterpreted by the public as a service that is regulated.
Since there is no supervision at home and abroad, there may be damage to the people as a result of the lack of supervision. Thai SEC points to the fact that there are a large number of foreign service providers experiencing liquidity problems at present that require them to cease providing services to their customers and suspend withdrawals of digital assets from their accounts.
As such, businesses that operate in the digital asset industry are prohibited from taking deposits of digital assets and using those assets for borrowing or investing.
There is a prohibition against crypto-related businesses taking advantage of the assets deposited (for example, a promotional budget from the company or group companies may provide such returns) unless it is a promotion that is conducted according to the rules and regulations prescribed by the Board of Directors.
The service provider or other persons are prohibited from advertising or soliciting the general public in any way that is intended to support the deposit-taking & lending services.
The recent regulation in Thailand may be a warning sign for users in other Asian countries. Although the limits may change over time, they affect the market. But what’s important is that crypto adoption will find its way every time.