Recently, the Thai Securities and Exchange Commission (SEC) announced that digital asset companies are prohibited from providing or supporting deposit and loan businesses. The decision angered several companies in the industry.
Thailand’s Securities and Exchange Commission prohibits digital asset companies from providing deposit and loan services @azcoinnews https://t.co/yuHmKSqrWM
— Kyptos (@azcoinnews) March 9, 2023
The Thai SEC’s move is aimed at protecting investors and the public from the risks associated with such services. The agency hopes to clarify the scope of government supervision and prevent digital asset service providers from causing damage to digital asset traders and the public due to service interruptions and financial problems.
The decision comes after many crypto lenders in Thailand and other countries recently suspended services offered by some crypto lenders. The SEC wants to delineate the regulatory boundaries for digital asset businesses, as they are currently not regulated by the government.
The SEC issued a notice based on comments received from stakeholders between September and October 2022. The decision was made at the SEC’s 12th meeting on January 1 and March.
The ban is expected to have a major impact on the industry, as many digital asset businesses in Thailand have been providing deposit and loan services. However, the SEC believes that the ban will help prevent scams and protect investors in the long run.
The SEC will continue to monitor the digital asset industry and may modify the ban if necessary. Encourage digital asset businesses to comply with new regulations and adjust their business models accordingly to avoid regulatory issues.
Overall, this is an important step in regulating the digital asset industry and protecting investors in Thailand. Emerging industries will need to adapt to the new regulations to continue operating in the country.
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according to Kyptos