The Thailand Securities and Exchange Commission (SEC) has prohibited cryptocurrency companies from offering digital assets lending and staking products, or depository services.
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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.
- Thailand has been tightening its crypto oversight after authorities were criticized for failing to protect local investors at Zipmex, a licensed cryptocurrency exchange that temporarily suspended withdrawals in July.
- Earlier this month, Thailand joined neighboring Singapore and India in cracking down on cryptocurrency advertisements.
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