Thailand’s SEC Bans Crypto Lending, Demands Risk Warning Disclosure

<p>Thailand’s
securities watchdog today (Monday) issued <a href="https://www.sec.or.th/TH/Pages/News_Detail.aspx?SECID=10018" target="_blank" rel="follow">new rules</a>
that ban cryptocurrency firms from offering <a href="https://www.financemagnates.com/terms/c/crypto-lending/">crypto lending</a> services that
provide returns to investors for their deposits. The rules also demand that digital
asset operators from July 31, 2023, to start
warning their
customers against the risks of cryptocurrency trading. </p><p>Thailand
Focuses on Investor Protection</p><p>According
to the Securities and Exchange Commission (SEC), crypto exchange operators must
display this message
(translated from Thai to English): “Cryptocurrencies carry a high level of
risk. Please study and understand the risks of <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a> thoroughly. You
may lose the entire amount of your investment."</p><p>The rules
also mandate crypto business operators to ensure
that their customers consent to
acknowledge the risks involved in cryptocurrency trading. In addition, crypto
firms are to assess their customers for investment suitability and prescribe ‘appropriate
investment proportions’. The watchdog said the rules are
targeted at increasing “investor protection from risks of such services.”</p><p>The SEC’s new rules on crypto lending
services and warning disclosure follow resolutions made on the issues in December and September 2022, respectively. In May this year, the markets supervisor further revised the resolution on risk warning disclosure. </p><p>More Crypto
Rules in Thailand</p><p>With the new rules, Thailand’s securities regulator continues its
strict oversight of the local
cryptocurrency industry. In September last year, the financial
markets supervisor <a href="https://www.financemagnates.com/cryptocurrency/regulation/thailands-sec-mandates-risk-disclosure-for-crypto-ads/" target="_blank" rel="follow">introduced strict rules</a> on crypto promotion and
advertising. It mandated crypto companies to display investment risks, provide
a balanced view between risks and returns, and submit information on their advertisements projects.</p><p>In early
2022, the watchdog also announced <a href="https://www.financemagnates.com/cryptocurrency/regulation/thailand-bans-crypto-payments-allows-trading/" target="_blank" rel="follow">a ban on crypto</a> as a means of payment effective from April of the year. However, it permitted Thai citizens
to invest and trade digital assets. </p><p>Furthermore,
authorities in Thailand recently <a href="https://www.financemagnates.com/cryptocurrency/regulation/thailand-to-impose-15-capital-gains-tax-on-crypto-profits/" target="_blank" rel="follow">proposed</a> enforcing a 15% capital gain
tax on crypto traders and miners, exempting exchanges. However, the government <a href="https://www.financemagnates.com/cryptocurrency/thailand-abandoned-its-proposed-15-crypto-tax/" target="_blank" rel="follow">jettisoned the plan</a> after facing strong opposition
to the move. The SEC is also considering <a href="https://www.financemagnates.com/cryptocurrency/thailand-considers-lifting-thb-300k-retail-ico-limit/" target="_blank" rel="follow">lifting
its restriction</a> on retail investment in initial coin offerings. </p><p>Moreover, the SEC in 2021 <a href="https://www.financemagnates.com/cryptocurrency/regulation/thailand-regulator-withdraws-proposal-of-harsh-crypto-investment-rules/" target="_blank" rel="follow">shelved</a> its proposed plan to impose a
minimum annual income of 1 million baht (around $33,000 at the time) on crypto
investors. However, it mandated <a href="https://www.financemagnates.com/cryptocurrency/regulation/thailand-mandates-physical-id-checks-of-crypto-investors/" target="_blank" rel="follow">physical ID checks</a> of crypto investors and <a href="https://www.financemagnates.com/cryptocurrency/regulation/thailand-unveils-new-registration-rules-for-crypto-asset-managers/" target="_blank" rel="follow">license registration</a> for crypto fund managers.</p><p>Despite the strict
regulatory environment, Thailand citizens continue to flock massively into the
cryptocurrency industry. According to Chainalysis, the Southeast Asia country <a href="https://blog.chainalysis.com/reports/2022-global-crypto-adoption-index/#key-takeaways" target="_blank" rel="follow">ranks 8th</a> in terms of global crypto
adoption in 2022.</p><p>USD LIBOR ceases; MetaTrader Web Terminals change addresses; <a href="https://www.financemagnates.com/forex/news-nuggets-3-july-usd-libor-ceases-metatrader-web-terminals-change-addresses/" target="_blank" rel="follow">read today's news nuggets</a>.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.