Thailand’s Securities and Exchange Commission (SEC) is reportedly preparing to take some radical measures. This comes in the wake of the crashes of crypto lending platforms in the summer of 2022. The Thai SEC plans to ban crypto platforms from offering or supporting digital asset custody services.
Protecting the general public
This made the Thai SEC familiar on their website. Opinions will be asked up to and including October 17, after which a choice will be made.
In principle, the plan will ban all lending and lending services of the ‘digital asset business operators’, in order to protect traders and the general public against the ‘risks of such transaction providers’.
Main points will be worked on. This includes, for example, banning operators from depositing digital assets with the promise of paying out returns. Even when the revenue generated does not come from a growing asset value, but from the promotion budget. Advertising for such services will also be prohibited.
Multiple crypto lending platforms in trouble
Earlier this summer, several crypto lending platforms ran into trouble. This is because of the collapse of the market. Also in Thailand, a crypto exchange called Zipmex went bankrupt because of these reasons. They had to suspend their shooting in July.
In September, the SEC accused crypto exchange of failing to comply with local laws. The matter was referred to the local police. The regulator further alleges that Zipmex has not disclosed information about digital wallets and crypto transactions in accordance with the country’s Digital Assets Act.
Finally, from October, the SEC will also introduce stricter advertising rules for all cryptocurrency-related companies operating in the country. For example, such companies will have to restrict advertising that directly promotes cryptocurrency to “official channels” such as their own websites and will have to submit details of advertisements and expenses, including the use of social media influencers and bloggers and their terms and conditions, to the SEC. It is not known whether this ban will continue to apply should it be introduced.
