Thailand introduces new digital asset service providers’ regulations
Thailand’s SEC has introduced new regulations ensuring investor protection from digital asset service providers.
Digital asset providers will also not be able to provide digital assets deposited by users for loans or investments.
The new regulations require providers to clearly disclose the risks that may arise from trading cryptocurrencies.
In order to prioritize investor protection, Thailand’s Securities and Exchange Commission (SEC) introduced new rules for companies that provide services for digital assets.
The rules now require crystal-clear risk warnings for cryptocurrency trading. A clear warning about the possible risks associated with trading digital assets must also be provided by providers of digital assets in accordance with the new regulations.
The Thai SEC stated that the warning message, along with the disclosure of the outcomes of the investment suitability assessment and appropriate asset allocation, must be displayed prominently. According to the rules, service providers must make sure customers consent and understand the risks before using their services.
Restrictions on lending and deposit services
The new guidelines place restrictions on the deposit and lending services provided by digital asset businesses in addition to risk disclosure. With the exception of certain pre-approved promotional activities, these rules forbid the provision or support of such services beginning on August 30.
According to the Thai SEC’s guidelines, it is strictly forbidden for any entities other than businesses dealing in digital assets to promote or otherwise influence deposit-taking and lending services.
On September 1, 2022, the Thai SEC approved the requirement that cryptocurrency business operators disclose security warnings about the risks of trading cryptocurrencies, starting a dialogue on investor protection regulations.
