Thai SEC has announced its plans to take new measures against crypto lending platforms after the mishap they experienced this year. According to recent reports in the country, the summer of this year saw significant crashes amongst these platforms, pushing the agency into thinking about this measure. With this new update, platforms will be prohibited from providing depository services or support deposits of digital assets for lending across the country.
The agency has announced a period of public opinion
According to the announcement, the Thai SEC mentioned that it had entered a period of public opinion. With this, the general public has been given a time frame to air their opinion. As per the announcement, the general opinion period is scheduled to start immediately, with the course running until October 17.
The decision will see the agency ban all activities related to staking across all digital platforms in the country’s crypto sector. The Thai SEC noted that banning these activities will help consumers in the long run. This is because they would be shielded from the mishap these platforms might experience. According to the details of the ban, platforms will be stopped from taking deposits from users to reward them with returns.
Thai SEC plans to impose stringent rules on advertisements
The information also mentioned that this ban would cover rewards paid to users in promotional events. Also, platforms would be banned from advertising for lending and staking services. Crypto lending platforms have been facing the heat amid the market downturn since the beginning of the year. Celsius is one excellent example, with the platform presently battling bankruptcy amid a pause in withdrawals on its platform. A crypto platform in Thailand also faced the same issue: users could not take out their funds from the platform as far back as July.
After long research and investigation by the Thai SEC, it was discovered that the platform failed to follow the fundamental protocols and has flaunted many laws over the last few years. The Thai SEC also announced that crypto platforms would also be subjected to new rules limiting how they advertise their products and services across the country. One of the rules is that the firms must submit every detail of their advertising, including budgets and other fees, to the agency before they are allowed to air the advertisements across the country.
Source: https://www.cryptopolitan.com/thai-sec-announces-update-on-crypto-lending/