Thailand’s Securities & Exchange Commission is introducing new policies about the dealings of cryptocurrency operators as the industry gains global maturity.
Latest reports show the Thai watchdog is planning to prohibit or ban crypto operators from providing crypto depository services, plus the network’s return on crypto payment on user deposits utilized for reinvesting or lending.
The Thai securities regulator will help safeguard retail investors and crypto traders. The latest development emerged after liquidity issues that exchanges encountered earlier in 2022. Also, multiple cryptocurrency lenders that promised depositors high-interest rates suffered bankruptcy after the crypto market endured a brutal slump.
Meanwhile, Thailand SEC proposed to ban cryptocurrency business operators from accepting digital asset deposits and using the assets to invest and borrow before paying depositors.
Also, it wants to prohibit soliciting the public or advertising any other activity that would back lending or deposit-taking services. That means digital operators should not accept asset deposits while promising depositors returns.
Thai SEC Measures
The Thailand regulator has jumped into action after liquidity issues that the exchange Zipmex encountered in July this year. Remember, Zipmex has a massive presence within Southeast Asian nations. However, liquidity problems had it halting withdrawals and deposits.
Meanwhile, the Thai SEC has been inquiring about the possible losses that the public suffered. For instance, it used feedback from affected Zipmex users through an online forum.
Though Zipmex resumed withdrawals for Thai users within no time, it saw the Securities & Exchange Commission concerned. Meanwhile, the regulator filed a case against cryptocurrency exchange Zipmex last week.
Also, the exchange confirmed plans to cooperate with the regulators to ensure compliance with security measures and necessary standards. Nevertheless, Thailand has been relatively hostile to crypto deals. The Securities & Exchange Commission banned crypto payments in Q1 2022.
Meanwhile, the efforts were to ensure a regulated marketplace for the public. Also, the Thai SEC had proposed new rules that call for information disclosure by cryptocurrency businesses, including exchanges, brokers, and dealers.
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