The Securities and Exchange Commission (SEC) of Thailand is preparing to take radical measures in the aftermath of crypto lending platforms’ crashes experienced in Summer 2022. The Thai SEC plans to prohibit crypto platforms from providing or supporting digital asset depository services.
The announcement, published on the official webpage on Sept. 15, reports that the SEC has opened a public hearing on the matter and will be collecting opinions until Oct. 17.
In principle, the regulator intends to ban any staking and lending services from the “digital asset business operators” to protect traders and the general public from the “risks of such transaction providers.”
The planned ban includes several principal points. It will prohibit operators from taking a deposit of digital assets with a promise to pay returns to depositors —even if the returns come not from the growing value of the assets but from the promotion budget. The advertising of lending and depositary services would also be banned.
Crypto lending platforms got themselves in serious trouble this summer amid the general market meltdown. Companies such as Celsius Network and Voyager Digital had frozen their withdrawals and then filed for bankruptcy.