Thai SEC Bans Digital Asset Businesses from Providing Deposit-Taking and Lending Services

By Tsunami 03/9/23 2:59 PM

Recently, the Securities and Exchange Commission of Thailand (SEC) announced a ban on digital asset businesses from providing or supporting deposit-taking and lending services. This decision has caused discontent among many companies in the industry.

The move is aimed at protecting investors and the public from the risks associated with these types of services. The SEC aims to clarify the scope of government regulation and prevent damage to digital asset traders and the public due to service disruptions and financial problems of digital asset service providers.

This decision follows the recent suspension of services provided by several crypto lending companies in Thailand and other countries. The SEC aims to clarify the regulatory scope of digital asset businesses, as they are not currently under government regulation.

The SEC has drafted the announcement based on input from stakeholders who provided comments between September and October of 2022. This decision was made at the 12th meeting of the SEC in 2022 on March 1.

The ban is expected to have a significant impact on the industry, as many digital asset businesses in Thailand have been providing deposit-taking and lending services. However, the SEC believes that the ban will help to prevent fraudulent practices and protect investors in the long run.

The SEC will continue to monitor the digital asset industry and may revise the ban if necessary. Digital asset businesses are urged to comply with the new regulations and adjust their business models accordingly to avoid legal issues.

Overall, this decision by the SEC is a significant step towards regulating the digital asset industry and protecting investors in Thailand. The industry will need to adapt to these new regulations to continue operating in the country.

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