Despite a positive start, Thailand is once again displaying its desire to curb the adoption and use of cryptocurrencies on its territory. The local Securities and Exchange Commission (SEC) suggests prohibiting companies to offer staking and lending services. While this is only a recommendation for the moment, it could change to a more general ban in the future.
However, the Thai state had made a good start in the sector. Evidenced by the many professionals and investors who settled there, in the hope that it continues this path. Unfortunately, it is clear that political decision-makers are taking a completely different turn in this year 2022: after the establishment of a new stricter tax frameworkthey have prohibits cryptocurrency payments for the purchase of goods and services. In addition, they explained that they wanted to give the country’s central bank more powers so that it supervises professionals carefully. In other words, their objective is to completely overhaul the current regulations on cryptocurrencies (deemed too risky) in order for it to be less flexibleand therefore less favourable.
In this general climate, the SEC makes yet another proposal that goes against the development of the crypto industry.
SEC no longer wants staking and lending in Thailand
Indeed, the regulator suggests prohibiting companies from carrying out all activities related to the lending and staking of cryptocurrencies. According to him, this proposal would strengthen the protection of investors and ” reduce the associated risks. »
What would happen? Consequently, and in addition to not being able to offer this type of service, local businesses could no longer “accept deposits in crypto assets by customers, nor lend, invest, bet or use these crypto assets. » The same applies to the payment to customers of regular (or other) interest. The SEC considers here that this would amount to prohibiting the provision of a “support for third parties undertaking cryptocurrency savings and lending services, including marketing. »
Presumably, this suggestion is a hot reaction taken by the SEC after it has witnessed the collapse of many companies – due to the bear market and other recent events such as the collapse of the Terra ecosystem or again from the 3AC investment fund. Unfortunately for the crypto ecosystem, it cannot be denied that all of these phenomena have generated great mistrust on the part of the authorities in many States. And in addition to the mistrust they now express, it is also an opportunity for them to question the benefits of this sector since they have new arguments to show that this is an area “too much”. risk.
The SEC makes a second proposal
The regulator took the opportunity to slip in a second proposal, still aimed at professionals in the sector. It aims to force them to “disclose risk information to users before admitting them to their platforms. » In addition, they will also have to require a minimum purchase of 5,000 baht (about 135 dollars). This last proposal is quite surprising, and it is difficult to understand its interest.
For the moment, the SEC’s ideas are only proposals, without any binding value. She also requests the public comments above. This consultation will end on next october 17. We should therefore know more by that date.
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