- These guarantees are necessary to protect ordinary investors and traders in accordance with the SEC.
- The latest event comes on the heels of the liquidity issues that many exchanges have faced this year.
Securities and Exchange Commission (SEC) in Thailand to launch additional measures related to the operations of crypto operators with the development of the cryptocurrency industry.
According to reports, the Thai SEC aims to restrict or prevent crypto operators from offering digital asset deposit services and from paying dividends on clients deposited cryptocurrencies that are then loaned out or reinvested.
Strict set of rules
According to the Thai SEC, these guarantees are necessary to protect ordinary investors and traders. The latest event comes on the heels of the liquidity issues many exchanges have faced so far this year. In addition, many cryptocurrency lenders who promised depositors of higher interest rates were forced to declare bankruptcy once the market crashed. The Thai SEC suggested that it is illegal for crypto companies to accept deposits of digital assets and then use those assets to borrow or invest in other digital assets in order to pay depositors.
Public relations, solicitation efforts, or other actions that may result in deposits or loans are not permitted. It would be illegal to prevent owners of digital businesses from receiving deposits of digital assets and paying those deposits to their customers.
After cryptocurrency exchange Zipmax Had liquidity problems In July 2022, the Securities and Exchange Commission of Thailand acted quickly. At the time, Zipmex, which was widely used in Southeast Asian countries, froze users’ accounts and prevented them from making or receiving any transactions.
Since then, the Thai Securities Commission (SEC) has inquired into the general risk of loss. Zipmex users who were also affected were able to provide feedback via an online forum. Zipmex withdrawals for Thai customers were immediately restored, but that didn’t allay the SEC’s concerns. Similarly, the Thai SEC reported crypto exchange Zipmex to the authorities last week.
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