Regardless of the condition of the crypto market, regulators are still leaving their mark on the industry using their power. On March 8, the Securities and Exchange Commission of Thailand (SEC) issued an announcement targeting crypto staking and lending services issued by crypto companies.
The announcement has raised questions and speculations among the crypto community about whether the Southeast Asian country wants to ban cryptocurrency staking and lending services in crypto exchange in his territory.
Thailand Bans Crypto Staking and Loans?
According to announcement published by the regulator on Wednesday, it asked for public opinion on the draft regulation on the “prohibition of digital asset business operators” or virtual asset providers (VASPs) “providers or engagements with credit” and staking services where the authority Call “crypto deposit” or “crypto deposit “.
According to SEC policy, VASPs are not allowed to provide crypto staking and lending services due to the possibility of the company becoming insolvent.
Thailand’s SEC noted:
Digital asset business operators are not allowed to provide or support deposit taking and lending services to prevent damage digital assets investors and the public in the event of possible service discontinuation or financial problems that may occur on a continuous basis or simultaneously between service providers as recently has been the case for foreign partners.
In addition, the Thai SEC further stated that the draft regulation that is expected for public hearing is also expected to clarify the common misconception that the supervision of regulated digital asset businesses is in the same scope as crypto staking and credit services that are currently not supervised at all.
The SEC added:
At proposed regulation the aim is to provide greater protection for investors, reduce related risks, and prevent misunderstandings that deposit and loan services are under the same supervision as regulated digital asset businesses.
Thailand’s SEC Proposes Ban on Staking and Loans
While Thailand’s SEC announced a ban on crypto staking and lending services, the regulator went further in its announcements since then. conduct public hearings on proposed regulatory principles between September and October last year.
The regulator stated that the draft regulation will prohibit digital asset business operators from accepting deposits for staking and lending as well as paying regular interest for depositing digital assets and advertising or persuading crypto staking and credit services.
Until now, the authorities have invited stakeholders and parties interested in participating in the proposed regulation to submit comments and suggestions via the SEC website or email by April 7, 2023.
Meanwhile, the global crypto market has only continued to decline as negative news has increased. The global crypto market capitalization has fallen below the $1 trillion mark with a value of $970 billion at the time of writing, down nearly 7% in the last 24 hours.
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