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