Thai SEC to Bring A New Ban on Crypto Operators, These Activities Are Prohibited

As the cryptocurrency market gains more maturity, the Securities and Exchange Commission of Thailand is initiating new measures regarding the working of crypto operators.

Reportedly, the Thai SEC is looking to ban or prohibit crypto operators from offering digital asset depository services as well as on the platform’s payment of returns on cryptocurrencies deposited by users and used for lending or reinvesting.

The Thai SEC said that these measures will help protect the traders and retail investors. The recent development comes in the wake of liquidity problems faced by exchanges earlier this year. Also, several crypto lenders, who promised higher interest rates to depositors, faced bankruptcy following a brutal crash in the crypto market. The Thai SEC has proposed the following:

1. Prohibit crypto business operators from taking deposits of digital assets and further using those digital assets to borrow and invest to pay the depositors.
2. Prohibiting advertising or soliciting the general public or conducting any activities that would support deposit-taking or lending services.
3. Prohibiting the digital business operators from accepting digital assets and paying returns to the depositors.

Thai SEC’s Regulatory Measures

The Thai SEC has swung into action following the liquidity problems faced by crypto exchange Zipmex back in July 2022. Back then, Zipmex which had a strong presence in Southeast Asian countries had halted deposits and withdrawals on the platform.

Since then the Thai SEC inquired about the potential losses faced by the public. It also took feedback from the impacted Zipmex users via an online forum. Although the withdrawals from Zipmex resumed quickly for its Thai customers, it has left the SEC in a state of concern. Last week, the Thai SEC also filed a police complaint against crypto exchange Zipmex.

Zipmex exchange assured that they are working with the regulators to fully comply with necessary standards and security measures.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.