Thai SEC Proposes Banning Crypto Businesses From Staking and Lending Activities
The Thai Securities and Exchange Commission (SEC) has proposed banning businesses from engaging in crypto staking and lending activities. The regulator is seeking public comments on the proposal, noting that the purpose of this prohibition is “to provide greater protection to investors and reduce associated risks.”
Thailand Seeks Public Comments on 2 Crypto Regulatory Proposals
The Thai Securities and Exchange Commission (SEC) announced Thursday that it is seeking public comments on two proposals relating to the regulation of crypto assets. The comment period for both proposals ends on Oct. 17.
The first is a proposal to prohibit businesses from crypto staking and lending activities. The securities watchdog said the purpose of this prohibition is “to provide greater protection to investors and reduce associated risks.”
The regulator detailed that under this proposal, businesses cannot accept “deposits of digital assets from the customers and lend, invest, stake or employ such digital assets.”
Crypto firms also cannot accept “deposit of digital assets from the customers and pay the customers regular interests or other types of benefits from their own source of fund.” Moreover, they are prohibited from “Providing support to third parties that undertake crypto saving and lending services, including marketing.”
The second is a proposal to obligate digital asset firms to disclose risk information as proposed by the SEC to users before admitting them to their platforms. Crypto firms must also require a minimum purchase of 5,000 baht ($135) for digital assets.
Crypto regulation in Thailand is undergoing changes. In August, the Thai finance minister revealed plans to amend the country’s law on digital assets to tighten the oversight of the crypto sector, particularly trading platforms. Earlier this month, the Thai SEC approved new requirements for crypto ads.
What do you think about the two crypto regulatory proposals by the Thai SEC? Let us know in the comments section below.