Thailand’s SEC Wants Feedback On Plan To Ban Crypto Lending And Staking

The SEC of Thailand holds a public hearing to increase awareness of the risks associated with staking and lending services. The SEC believes that these crypto activities could create potential risks for investors.

The financial regulator wants to ensure the public knows the risks of staking and lending services. They want to ensure investors understand the potential dangers they could face using such services.

Thailand SEC’s Proposal To Protect Investors

Thailand’s financial watchdog, the Thai SEC, recently declared that it is gathering public opinion on a proposed regulation. The proposal would disallow Virtual Asset Service Providers (VASPs) from participating in crypto staking and lending activities.

The SEC specified that VASPs must not use investors’ deposits to furnish lending services. Hence, such investors can access their funds anytime, even if the service stops.

The SEC has mentioned that the draft regulation will clarify the extent of supervision for digital asset businesses since they currently need to be under the complete statute. Additionally, the proposed regulation will give investors more security and reduce potential risks.

It also ensures people correctly assume that companies that offer deposit and loan services follow the rules in the same way as digital asset businesses.

The US Securities and Exchange Commission (SEC) has communicated that they held a public hearing on their proposed regulation in September and October 2022. All stakeholders and interested parties have been asked to submit their input and comments to the SEC’s website or email address by April 7, 2023.

Thailand Strengthens Crypto Regulations Amidst Crypto Lending Crisis

The announcement comes as Thailand’s Securities and Exchange Commission is strengthening its cryptocurrency regulations in light of the current crisis in the crypto lending sector. Major industry lenders like Celsius Network, Voyager Digital, Babel Finance, Hodlnaut, and Genesis Global have been experiencing liquidity problems.

This is due to the continuous bear trend in the cryptocurrency market, resulting in some needing to reorganize or dissolve their venture. Furthermore, Gemini, a well-known crypto exchange operated by Tyler and Cameron Winklevoss, is facing a lawsuit from the US Securities and Exchange Commission (SEC) regarding its “Earn” program.

The program promised up to 8.05% in yearly returns to its investors. The public hearing will be essential in determining whether staking and lending services should be allowable in the country.