The Securities and Exchange Commission of Thailand (SEC) has banned local cryptocurrency entities from providing betting and lending services to clients. The ban is intended to protect merchants and the public from risks related to these activities.
The Southeast Asian country has been active in the digital asset scene recently. At the beginning of the year, local authorities showed their intention to start taxing transactions using bitcoin and altcoins, with the subsequent ban on the use of cryptocurrencies for payments.
The next step in Thailand
According to a press release, the SEC in Thailand has banned local cryptocurrency business operators from offering or supporting digital asset custody services such as staking and lending. The Supervisory Authority raised hopes that this step will ensure maximum protection for local investors and reduce public risks when interacting with the sector.
The regulator said it was important to enforce such a ban because many foreign companies had faced liquidity problems in recent months. An example of this is the DeFi platform and one of the largest cryptocurrency lenders – Celsius Network.
In June, withdrawals, exchanges and transfers between accounts ceased, citing “harsh market conditions”. A month later, the company filed for Chapter 11 bankruptcy protection in the Southern District of New York.
Another crypto lending platform on that list is Babel Finance, which has paused all withdrawals due to liquidity issues. Shortly thereafter, it was rumored that it would delay repaying its debts after reaching agreements with major clients and counterparties.
In addition to foreign organizations, Thailand also has a representative among the troubled crypto entities. In July, digital asset exchange Zipmex suspended customer withdrawals on its platform, while a week later it filed for a temporary moratorium to prevent its creditors from filing claims for the next six months.
Cryptographic environment in Thailand
In the past year, the Thai authorities seemed determined to boost the development of the domestic digital asset industry. In September, the Tourism Authority of Thailand (TAT) wanted to create a utility token called TAT coin, which could enable the transfer of coupons and help tour operators gain more cash.
At the time, Yuthasak – the agency’s governor – said digital assets were “changing the world” and could help Thailand get back on its feet after the Covid-19 pandemic crippled the local tourism sector.
In 2022, the Asian country was dealing with the type of taxes that would apply to mining, trading and cryptocurrency transactions. After several deliberations, it has rescinded its intentions to impose a 15% withholding tax on digital asset transactions.
Another major change occurred in early April when lawmakers forbidden The use of cryptocurrencies as a means of payment for goods and services.
The Thai SEC website banning local crypto companies from providing storage and lending services first appeared on CryptoPotato.