Thailand has joined Singapore in prohibiting crypto exchanges from providing lending and staking services to retail investors. This makes Thailand the second country in Southeast Asia to ban such activities for retail investors.
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Thailand prohibits crypto exchanges from providing lending services. Thailand Bans Lending And Staking Services
The Securities and Exchange Commission (SEC) of Thailand has recently issued new regulations for digital asset service providers with the aim of enhancing investor protection. As part of these regulations, crypto exchanges are now prohibited from offering lending and staking services. Thailand prohibits crypto exchanges from providing lending services.
According to the Thai SEC:
It is forbidden to advertise or persuade the general public or do any other act in the manner of supporting the deposit staking & lending service.
The Securities and Exchange Commission (SEC) has announced that exchanges are prohibited from offering depository services that provide returns to depositors and lenders. This ban will come into effect on July 31, 2023. Additionally, the SEC has introduced a new rule that requires exchanges to display a clear and mandatory trading risk disclaimer to customers. The disclaimer will provide customers with information about the risks associated with trading. The risk disclaimer reads:
Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose your entire investment.
The Thai Securities and Exchange Commission (SEC) mandates that exchange operators must ensure that users are aware of the risks associated with trading before they agree to use their services. Additionally, the SEC has implemented investor suitability assessments to determine the maximum amount that users can invest in cryptocurrency.
Singapore Bans Lending And Staking For Retail Investors
The Securities and Exchange Commission (SEC) of Thailand has announced a ban on staking services for retail investors, following a similar move by Singapore's Monetary Authority (MAS). The regulator stated that staking activities are deemed unsuitable for retail investors due to their highly speculative nature and extremely high risk. This decision aims to protect the public from potential financial losses.
The MAS said:
Regulations alone cannot protect consumers from all losses, given the extremely high risk and speculative nature of digital payment token trading.
The Monetary Authority of Singapore (MAS) has announced that crypto exchanges will be required to safeguard customer assets in a trust by the end of the year, in addition to the ban.
The Monetary Authority of Singapore (MAS) today announced new requirements for Digital Payment Token (DPT) service providers to safekeep customer assets under a statutory trust before the end of the year. This will mitigate the risk of loss or misuse of customers’ assets, and facilitate the recovery of customers’ assets in the event of a DPT service provider’s insolvency.
Following the 2022 crypto lending crisis, Thailand and Singapore have implemented new investor protection regulations to prevent similar incidents from causing financial losses to investors.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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