The Securities and Exchange Commission of Thailand (SEC) has implemented new regulations concerning lending and custodial services to better safeguard consumers and reduce misleading advertising.
The Securities and Exchange Commission (SEC) of Thailand has issued new guidelines for companies providing digital asset services to increase investor protection in the digital asset market.
This action limits the ability of platforms to provide any kind of return on clients’ deposited cryptocurrencies via crypto lending services. The SEC has adopted these rules, which will go into effect on August 30th, to increase investor protection against the risks connected with lending services.
In September 2022, the SEC finally recognised that cryptocurrency firms needed to warn customers about the dangers of trading digital money.
“Ads that prescribe cautions about potential investing dangers are problematic. The presentation format has to be straightforward to follow. Must provide all material facts necessary for investors to make sound judgements.”
The Thai government sees the usage of digital assets as too hazardous, and this is not the first regulation the country has enacted along those lines. To protect the financial system and the economy as a whole, the Bank of Thailand and the Securities and Exchange Commission of Thailand have outlawed the use of cryptocurrencies to purchase goods and services.
“Users may be at risk if there is an issue. Consumers that utilise a variety of different payment methods may have additional hassles or charges.”
Also Read: U.S. Federal Reserve Approves 57 Businesses To Use The ‘FedNow’ Instant Payments System
Wallets