Thailand SEC Announces New Stringent Regulations for Crypto Firms
- A predefined message containing related risks must appear on all platforms at all times.
- Exchanges cannot provide any kind of return on clients’ deposited tokens.
In order to safeguard investors, the Securities and Exchange Commission (SEC) of Thailand has announced new regulations for companies that offer services related to digital assets.
In accordance with the new regulations, companies providing digital asset services must clearly communicate the dangers of investing in cryptocurrencies. A predefined message must appear on all platforms at all times.
The message reads:
“Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose the entire investment amount.”
Before clients may use the service, the company owner must arrange for the users to provide permission and recognize the dangers, and the warning message must be prominently displayed.
Lending or Investing Funds Prohibited
The new rules prohibit service providers from lending or investing consumers’ money and also include a statement about trading risks.
Since crypto lending services have been forbidden by the Thailand SEC. Exchanges cannot provide any kind of return on clients’ deposited tokens. The SEC’s mission is to safeguard investors against financial fraud and other threats in the capital markets. On July 31, 2023, the new rules will go into force in Thailand.
With the SEC’s approval of the necessity for security warnings by cryptocurrency company operators to disclose the dangers of trading cryptocurrencies on September 1, 2022, the conversation surrounding new laws for investor protection got underway.
After a major crypto lending crisis in 2022’s bear market, new investor safety measures were enacted. During the cryptocurrency market crash, a number of lending companies that had amassed billions of dollars in client deposits by promising high rates of return collapsed.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
