The Thailand Securities and Exchange Commission (SEC) has prohibited cryptocurrency companies from offering digital assets lending and staking products, or depository services. 

See related article: Thailand’s SCBX scraps plan to buy 51% stake in crypto exchange Bitkub

Fast facts

  • The regulator said in a press release on Thursday that the decision was made to protect traders and the general public from business risks associated with companies offering depository services.
  • Lack of risk management from crypto stakers and lenders was brought to the attention of global regulators after numerous depository service providers froze user withdrawals after cryptocurrency prices started to drop in the aftermath of the Terra Luna crash. 

See related article: Thailand’s central bank to get more power in crypto regulation overhaul: report