Thailand’s SEC Bans Crypto Lending, Calls for Threat Warning Disclosure

Thai Securities Commission Announces New Regulations for Cryptocurrency Lending Services
New rules prohibiting cryptocurrency companies from offering crypto loan services that reimburse customers for their deposits were released by Thailand’s securities authority on Monday. The foundations also mandate that providers of digital assets begin alerting their customers to the risks associated with purchasing and selling cryptocurrencies from July 31, 2023.
The Securities and Exchange Commission (SEC) states that cryptocurrency exchange companies must display the following notice (which is translated from Thai to English): “Cryptocurrencies carry an excessive degree of danger.” Please do your homework and fully understand the risks associated with cryptocurrency. It’s possible that you will forfeit the entirety of your funds.
The foundations also need owners of bitcoin businesses to ensure that their customers have given their permission to acknowledge the risks associated with purchasing and selling cryptocurrencies. Additionally, cryptocurrency companies must determine whether their clients’ funding is appropriate and recommend “appropriate funding proportions.” The principles, according to the watchdog, are aimed at increasing “investor safety from dangers of such providers.”
With the new regulations, Thailand’s securities watchdog will continue to closely monitor the domestic cryptocurrency market. The supervisor of the financial markets introduced stringent limits for cryptocurrency promotion and advertising in September of last year. It required cryptocurrency companies to disclose funding risks, offer a fair assessment of the risks and rewards, and provide information about their advertising tasks.
The agency also announced a ban on cryptocurrencies in early 2022 in an effort to cut costs starting in April of the same year. However, it allowed citizens of Thailand to participate and trade digital property.
Furthermore, Thai officials have recently suggested charging cryptocurrency miners and retailers 15% of their profits, with exchanges being exempt. However, after facing strong opposition to the transfer, the federal administration abandoned the plan. The SEC may be considering relaxing its prohibition on retail fundraising for initial coin offerings.