Thailand's SEC enhances investor protection with new cryptocurrency trading rules.
Zach Anderson Jul 03, 2023 08:12
Thailand's Securities and Exchange Commission (SEC) has introduced new guidelines to strengthen investor protection in the cryptocurrency industry. The SEC has mandated clearer disclosure of risk warnings and restrictions on digital asset business operators' deposit and lending services.
Thailand's Securities and Exchange Commission (SEC) has introduced new guidelines to strengthen investor protection in the cryptocurrency industry. The SEC has mandated clearer disclosure of risk warnings and restrictions on digital asset business operators' deposit and lending services.
The rules, endorsed during meetings in September, December of 2022, as well as May of 2023, require cryptocurrency business operators to explicitly inform potential investors about the inherent risks involved in trading. Customers must acknowledge these risks and provide consent before commencing trading, following an investment suitability assessment and appropriate investment proportions.
The second part of the new regulations prohibits digital asset business operators from providing or supporting deposit taking and lending services, with certain exceptions. These rules will take effect on August 30, 2023, and prohibit offering returns on digital asset deposits unless it falls under promotional activities defined by the SEC.
Additionally, the regulations prohibit any actions aimed at persuading or advertising deposit taking and lending services to the general public, including those provided by other entities.
