The Securities and Exchange Commission (SEC) in Thailand has proposed that a ban be imposed on crypto lending and staking activities and that people not be permitted to engage in them.
The regular has now opened up the proposal for comments from the public and also noted that the reason behind the ban would be to ensure greater investor protection and for mitigating the risks associated with these activities.
Last Thursday, the Securities and Exchange Commission (SEC) in Thailand announced that it was looking for public comments on two proposals that were related to the regulation of cryptocurrencies in the country.
The deadline for giving comments on both proposals is scheduled to be October 17th. The first proposal is about imposing a ban on crypto lending and staking activities.
According to the securities watchdog, they have decided to introduce this measure because they want to provide maximum consumer protection and mitigate the risks inherent in these activities.
The regulator went on to say that this particular proposal would not allow businesses to accept digital assets deposits from their clients and then lend, stake, invest, or employ them in any activity.
The Thai SEC said that crypto companies would not be allowed to accept deposits of digital assets from their clients and then pay them interest on them, or any other kinds of benefits from their own pocket.
In addition, they would also be prohibited from providing any support to third parties that engage in crypto lending and staking activities, including marketing.
This is just the first proposal, while the second one that has been introduced for public comments is aimed at obligating crypto companies to disclose their risk information.
Digital asset companies would be required to disclose this risk warning to users before they allow them to sign up on their platforms for any crypto-related activity.
Furthermore, the proposal also dictates that digital asset companies would have to set a minimum figure of 5,000 baht ($135) for engaging in activities related to crypto assets.
As obvious, the goal of this second proposal is to ensure that all those who decide to enter the crypto space understand the risks and have the amount of capital to go forward with it.
Thailand is currently working on making updates to its crypto regulation. The country’s finance minister disclosed in August that they had plans on amending the laws of Thailand related to digital assets.
This was for tightening their oversight of the crypto industry in Thailand, especially where trading platforms are concerned.
Furthermore, the SEC in Thailand had also given its approval earlier this month for new requirements that would have to be met for posting crypto ads.
The purpose of these adjustments to crypto ads was to ensure that consumers are appropriately warned about the risks associated with cryptocurrencies, as many people have suffered losses.
Other countries are also becoming proactive when it comes to crypto regulation in order to provide maximum protection to investors.