The Securities and Exchange Commission of Thailand has introduced new guidelines that make it mandatory for digital asset service providers to alert potential investors about the risks associated with trading or investing in cryptocurrencies. These regulations also prohibit digital asset business operators from offering services related to deposit-taking and lending, starting from August 30, 2023.
The Crypto Risk Warning
Thailand’s securities regulator has announced the implementation of guidelines requiring digital asset service providers to display warnings about the “potential risks associated with trading cryptocurrencies.” According to the regulator, all regulated digital asset platforms must begin showcasing this warning starting on July 31.
In their statement released on July 3, the securities regulator emphasized that the warning message should not only be visible but should also ensure that prospective investors fully comprehend the risks involved.
The latest guidelines issued by the Thai SEC state, “Cryptocurrencies are high-risk. Please thoroughly study and understand the risks of cryptocurrencies because you may lose the entire amount invested.”
Alongside disclosing potential risks, the guidelines stipulate that digital asset business operators will be prohibited from providing services or supporting deposit-taking and lending services as of August 30. Consequently, participants in the Thai crypto industry will not be allowed to offer interest on deposits or lend user funds.
The release of these updated guidelines by the securities regulator occurs less than a year after the SEC mandated that digital asset service providers must warn prospective investors about the risks involved.
Frequently Asked Questions (FAQs) about crypto regulations
What are the new regulations imposed by Thailand’s securities regulator?
Thailand’s securities regulator has introduced new regulations that require digital asset service providers to issue risk warnings to potential investors regarding trading or investing in cryptocurrencies. These regulations also prohibit digital asset business operators from offering deposit-taking and lending services.
When do the new regulations come into effect?
The requirement for digital asset platforms to display risk warnings starts on July 31. However, the prohibition on providing deposit-taking and lending services begins on August 30, 2023.
What does the risk warning message entail?
The risk warning message emphasizes the high-risk nature of cryptocurrencies and advises prospective investors to thoroughly study and understand the risks involved. It cautions that there is a possibility of losing the entire amount invested.
How will the new regulations impact the crypto industry in Thailand?
The new regulations will have a significant impact on the crypto industry in Thailand. Digital asset business operators will no longer be allowed to offer interest on deposits or lend user funds. Additionally, any advertising or marketing that promotes deposit-taking and lending services will be prohibited.
Are these regulations a recent development?
The release of these updated guidelines by the securities regulator comes less than a year after the SEC approved a requirement mandating digital asset service providers to warn prospective investors about the risks associated with cryptocurrencies.
More about crypto regulations
- Thailand Securities and Exchange Commission
- Thailand’s New Digital Asset Regulations
- Thai SEC Guidelines on Crypto Risk Warnings
- Thailand’s Crypto Industry Regulations
- SEC Requirements for Digital Asset Service Providers