The Thai Securities and Exchange Commission (SEC) has taken significant steps towards regulating the cryptocurrency industry in a bid to enhance investor protection and mitigate risks. In meetings held on September 1, 2022, December 1, 2022, and May 11, 2023, the SEC approved important measures to promote transparency and security within the sector.
ก.ล.ต. ออกหลักเกณฑ์การเปิดเผยคำเตือนความเสี่ยงจากการซื้อขายคริปโทเคอร์เรนซีและการห้ามให้บริการ หรือสนับสนุนบริการรับฝากสินทรัพย์ดิจิทัลที่มีการจ่ายผลตอบแทนแก่ผู้ฝากและการให้กู้ยืม https://t.co/oy2BIoFzTu
— ThaiSEC_News (@ThaiSEC_News) July 3, 2023
One key measure is the requirement for cryptocurrency trading center operators, cryptocurrency brokers, and traders to disclose explicit risk warnings associated with digital currency trading. Effective from July 31, 2023, these disclosures must prominently display a cautionary message stating, “Cryptocurrencies are high risk. Please thoroughly understand the risks involved as you may lose your entire investment.”
Furthermore, prior to engaging in the service, investment suitability assessments and the allocation of appropriate investment proportions must be communicated to customers. Consent and acknowledgment of the risks will be mandatory.
Another significant measure, set to take effect from August 30, 2023, prohibits digital asset business operators from providing deposit-taking and lending services, with specific exceptions outlined in the Notification. This includes the prohibition of accepting digital asset deposits for borrowing or investment purposes, returning profits to depositors, offering returns or incentives for deposits without SEC-approved sales promotion rules, and advertising or persuading the public to support deposit-taking and lending services.
The SEC’s aim is to create a more secure environment for cryptocurrency trading in Thailand by enhancing disclosure requirements and restricting certain activities. The new rules have been officially published in the Royal Gazette.
Compiled by Coinbold