Thai SEC Set To Ban Cryptocurrency Lending Citing “Protection Of Traders And Public” | Cryptocurrency

  • The Thailand Securities and Exchange Commission (SEC) has established rules prohibiting digital asset operators from providing lending services.
  • According to the rules, cryptocurrency service providers are also prohibited from accepting cryptocurrency as collateral for loans.
  • Cryptocurrency service providers in Thailand have also been ordered not to advertise lending services.

The crypto space is growing rapidly and therefore worries governments around the world. Regulations and rules have been discussed in many countries around the world, with some, like Thailand, even addressing these concerns.

No more crypto lending in Thailand

In a September 15 message, the Securities and Exchange Commission (SEC) of Thailand informed crypto users and service providers of the new rules imposed on lending services and also said that they were open to receiving comments at this subject.

The new rules were enforced due to concerns about the potential threat and risks that lending services and service providers pose to the population. The read message,

“This is to protect merchants and the general public from the risks of these transaction providers, as well as helping to reduce the problem that can be mistaken for a service regulated by regulators, which can lead to harm. public due to a lack of supervision at home and abroad.

The SEC highlighted the new rules it has put in place. According to these, cryptocurrency service providers can no longer accept cryptocurrencies or other similar assets as collateral for loans or investments or to pay returns to depositors.

In addition to banning lending services, these cryptocurrency service providers can no longer advertise or convince investors to participate in lending services.

This SEC ban will revoke the Thai people’s access to the $15.16 billion market encompassed by 177 protocols.

TVL of loan protocols

The United States on Cryptocurrency Regulation

Unlike the Thai SEC, the US SEC has still not provided a framework regarding cryptocurrencies and their regulation. US Senator from Pennsylvania, Pat Toomey, even continued to attack the SEC, stating:

“The problem is that the SEC does not share with us the framework they use. Gary Gensler claims that virtually all cryptocurrency tokens are securities. I think reasonable people might disagree with that.

After President Joe Biden signed the executive order, which called for a review of cryptocurrencies and other digital assets, on March 9, no major developments were presented by the regulator, leaving citizens in the dark. limbo.

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Thai SEC Set To Ban Cryptocurrency Lending Citing “Protection Of Traders And Public” | Cryptocurrency

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