Thai’s Regulatory Authority Is Planning On Banning Cryptocurrency Lending In the Country

The Securities and Exchange Commission of Thailand is making a strategy to take significant actions following the collapse of the crypto lending companies this Summer. The regulator considers banning the crypto venues from offering support for the depository services dealing with digital assets.

Thai Regulator Considers Implementing a ban on Crypto Lending

Recently, a declaration was published on the regulatory body’s formal webpage. The SEC has mentioned there to have initiated an open hearing over the issue and the opinions will be collected by it until 17th October. The main focus of the SEC is on prohibiting the operators from utilizing any lending and staking services. This is so to prevent the common masses from the hazards of dealing with such transfer providers.

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The scheduled prohibition takes into account many chief points. The watchdog will stop the operators from obtaining digital assets’ deposits with a pledge to recompense the profits to the depositors, no matter if the gains are collected from the promotion budget instead of these assets’ improving value. Apart from that, the depositary, as well as the lending services, would be prohibited as well.

The venues offering the crypto lending services got entangled in enormous trouble during the summer of 2022 during the overall meltdown throughout the market. These firms, taking into account Voyager Digital and Celsius Network, have frozen the withdrawals from their platforms and filed bankruptcy filings after that.

In Thailand, Zipmex (an exchange of cryptocurrency that halted withdrawals in recent July) has become the top example in this respect. The exchange referred to several circumstances (which were out of its control) as being responsible for the consequences experienced by it. In September this year, the crypto exchange, and Akalarp Yimwilai (the CEO of the platform) were alleged by the country’s regulator for being non-compliant with the regional laws.

Thailand’s SEC to Impose more Stringent Rules for Crypto Advertisement

The SEC of Thailand handed the issue over to the country’s police. As per the assertions of the watchdog, information related to crypto transactions and digital wallets has not been provided by Zipmex to comply with the Digital Assets Act of the country. In addition to this, the SEC will impose more strict rules for the advertisement of crypto by the companies working within the jurisdiction, initiating from October this year.

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