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HomeLaw & PoliticsThailand SEC plans to outlaw crypto lending platforms in the nation

Thailand SEC plans to outlaw crypto lending platforms in the nation

On September 15, The Thailand SEC (Securities and Exchange Commission) announced its plans to take radical steps in the repercussions of crypto lending platform crashes that happened in the summer of 2022. The Thai SEC intends to ban crypto platforms from offering or supporting digital currency vault services.

 According to the declaration published on September 15, the official website conveys that the SEC has opened a formal conference and will gather opinions till October 17 regarding the situation.

 The controllers aim to prohibit lending and staking services to safeguard the traders and general public from the “digital resource business operators” and the “risks of such transaction providers”. 

Important points regarding the Thailand SEC ban

Thailand SEC

The proposed ban covers a number of important points. It will restrict administrators from accepting digital asset deposits with a promise to return funds to depositors-even if those funds originate from marketing budgets rather than the assets’ rising in price. Additionally, advertisements for depository and loan services would also be prohibited.

During the broader market collapse this summer, cryptocurrency lending platforms found themselves in significant problems. For example, firms like Voyager Digital and Celsius Network have suspended their withdrawals and then filed for bankruptcy.

 Thailand saw the same issue with its own Thai-based firm, Zipmex, a cryptocurrency exchange that froze withdrawals in July, noting a “combination of factors past [its] control.” 

 The SEC reported the issue to the police in September after alleging the cryptocurrency exchange and its co-founder, Akalarp Yimwilai, had broken local regulations. According to the authorities, Zipmex did not comply with the country’s Digital Assets Act by providing information on digital wallets and cryptocurrency transactions.

 Starting in October, the SEC will also impose strict advertising regulations on cryptocurrency companies doing business in the nation. 

 Companies will be forced to limit cryptocurrency-related advertising to “official channels” such as their own web pages and to provide the SEC with information on all advertisements and spending, incorporating the utilization of social media bloggers and influencers, and their conditions.

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