Thailand’s SEC Introduces New Regulations for Digital Assets
The Thailand Securities and Exchange Commission (SEC) has implemented new rules for digital assets. The guidelines require digital asset service providers to give detailed risk warnings to ensure users are aware of the potential risks involved in cryptocurrency trading. The regulations aim to enhance investor protection. Key points include:
1. Mandatory risk disclosure: Starting from July 31, 2023, cryptocurrency trading centers must provide clear warnings about the high-risk nature of cryptocurrencies. Users must understand the possibility of losing their entire investment.
2. Investment suitability assessment: Users must receive an assessment of investment suitability and information on appropriate investment proportions before accessing services.
3. Ban on deposit-taking and lending services: Effective from August 30, 2023, digital asset businesses are prohibited from offering deposit-taking and lending services, except for specific exceptions.
4. Discussions and meetings: These regulations were initiated on September 1, 2022, with subsequent meetings held on December 1, 2022, and May 11, 2023, focusing on the prohibition of certain services.
5. Southeast Asia trend: Thailand is the second country in Southeast Asia to ban cryptocurrency exchanges from providing lending services, reflecting a commitment to investor protection.
Closing paragraph:
Thailand’s SEC is taking a proactive approach to safeguarding investors in the digital asset industry. With this new regulation, users will be better informed about the risks involved in cryptocurrency trading. The ban on deposit-taking and lending services aims to foster responsible practices.
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