Thailand’s SEC Will Ban the Use of Crypto Assets in Lending
Crypto service providers (VASPs) in Thailand will be prohibited on July 31, 2023 from utilizing customers’ funds for lending and investments in order to ensure the protection of investors.
This edict stems from the Securities and Exchange Commission (SEC) guidelines and comes after the collapse of the BlockFi and Celsius Network landing platforms.
All platforms offering services involving cryptocurrencies must present a warning to customers which reads:
“Cryptocurrencies come with high risk. Please study [documentation/terms and conditions] carefully as you may lose the entire amount of your investment.”
Clients must affirm these risks by signing an agreement. In addition, the Central Bank of Thailand has commanded that VASPs providing custodial services must develop a digital wallet management system by January 2023.
Furthermore, the analogous Central Bank of Singapore requires that all local Bitcoin exchanges shift over customers’ digital assets to trusts by the end of the year.
