Thailand SEC Bans Crypto Lending Services

In Brief

• Thailand's SEC has mandated crypto trading platforms to disclose risks associated with cryptocurrencies to protect investors.
• The SEC has also banned crypto lending and borrowing services, with the prohibition effective from August 30, 2023.
• Unfazed by regulatory actions, Thailand remains a hotspot for crypto firms, with Binance being a prominent entrant.

Thailand’s Securities and Exchange Commission (SEC) has made it mandatory for crypto trading platforms to make a disclosure statement highlighting the risks involved. Further, the SEC has prohibited crypto lending and borrowing services.

After multiple collapses last year, the regulators are working on crypto regulation and investors’ protection.

Thailand SEC Makes Risk Disclosure Mandatory
Today, Thailand SEC published a press release announcing the new crypto guidelines requiring trading platforms to display a disclosure statement of risk associated with crypto trading. The SEC has asked platforms to display the following message such that it is clearly visible:“Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly because you may lose the entire investment amount.”

Also, before using the crypto business operators’ services, customers must consent and acknowledge the risks. As per the press release, the new rules would be effective from Jul 31, 2023.

Ban on Crypto Lending
Along with making risk disclosure mandatory, the Thailand SEC has banned platforms from providing returns to customers who lend their crypto assets.

The proposal to ban crypto lending services has been discussed since September 2022. Finally, the prohibition would come into effect from August 30, 2023.

Cryptocurrency lending can be a viable option to earn passive income. However, it comes with its own risks, so choosing a crypto lending platform is challenging.

After the collapse of various lending and borrowing platform in 2022, the governments are cautious about such service providers. Various notable crypto lending platforms such as Celsius, Voyager, Vauld, and BlockFi crumbled down to bankruptcy last year.

Meanwhile, Thailand is also working to attract crypto companies. In March 2023, BeInCrypto reported that Thailand would allow tax exemptions to the companies raising funds through Initial Coin Offerings (ICO).

At the same time, the country has granted an operational license to Binance’s joint venture – Gulf Binance.

Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.