Thai SEC Issues New Rules for Crypto Firms, Bans Lending Servicesby Fintech News Singapore July 4, 2023
The Thailand Securities and Exchange Commission (SEC) has issued a new set of guidelines for crypto platforms including banning them from offering lending services to customers.
According to the new SEC guidelines, these firms will have to disclose a warning about potential risks associated with cryptocurrency trading. They will need to state,
“Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly because you may lose the entire investment amount.”
Digital asset business operators will also provide investment suitability assessment results before customers begin trading. Additionally, customers will need to give their consent and acknowledge the risks of crypto trading before they proceed.
These new rules will come into effect on 31 July 2023.
The announcement by the Thai SEC comes just as the Monetary Authority of Singapore shared a list of its own requirements for Digital Payment Token (DPT) service providers. This includes having to segregate customers’ assets from its own assets and safekeep it under a statutory trust before the end of the year.