Thailand regulator says Cryptocurrencies are high risk, ban crypto lending
Under the new measures, Thailand’s securities regulatory body issued some new rules & regulations against Cryptocurrencies activities, to enhance customer protection.
Crypto trading is fully legal under the jurisdiction of Thailand but under the country’s 2022 rules, issued by Thailand’s securities regulatory body SEC, cryptocurrencies used in the payment services are fully illegal. Also, the crypto traders are only required to pay only 15% tax against the crypto investment gain, which is still an average small cut over other countries’ crypto tax cut rules.
In the latest, Thailand’s SEC issued new guidelines against unfair cryptocurrency advertisement & investment activities by the crypto firms on behalf of the customer’s fund. The new guidelines can be seen on the Thai SEC website, which mentioned that cryptocurrencies are highly risky assets and suggested deep study before investment.
“Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose the entire investment amount,” the Thai SEC announcement read.
Under the new guidelines, the SEC body issued orders against all those centralized crypto staking & lending platforms to prohibit investment, on behalf of customers’ investment.
This new measure is a type of direct ban order against the crypto lending platforms & crypto custody service providers, as they use customers’ funds for further investment.
Through these new measures, the Thai SEC wants to ensure that crypto Investors remain safer against their risky investments in crypto assets. The new measures will come into effect officially from 30th Aug.
“Digital assets are not allowed to be deposited by giving or proposing to give returns from digital asset deposits or other returns to depositors (such as from the company’s marketing budget) unless it is like sales promotion according to the rules prescribed by the SEC.”
Earlier in March 2022, the SEC agency announced a ban against every kind of crypto payment for goods & services, to keep the financial stability risks away from the country.
The latest measures issued by the country’s securities regulatory body should not be taken as a negative decision for the crypto sector because these measures are going to bring a better path for the crypto business & adoption in the country.
Last year, huge numbers of crypto lending platforms collapsed badly. Binance CEO Changpeng Zhao (CZ) once said that the business model of crypto lending platforms is not fair, as they depend on third-party crypto companies & they invest their funds on behalf of trust instead of collaterals.
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