Back to the list

Thailand’s SEC wants to move forward with crypto staking ban

source-logo  coininsider.com 10 March 2023 09:52, UTC

The Securities and Exchange Commission (SEC) of Thailand is currently asking for public input on a potential ban on crypto staking and lending services.

The SEC announced that it is considering a draft regulation that would prohibit virtual asset service providers (VASPs) from participating in crypto lending and staking transactions. The regulator’s policy is to prevent VASPs from deploying users’ deposits and offering lending services in order to protect investors in the event that services are shut down.

The SEC’s proposed regulation also aims to clarify the degree of monitoring of cryptocurrency and digital asset businesses as a result of an industry that is not currently fully supervised in the country. According to the SEC, the regulation would provide greater protection to investors, reduce risks, and prevent misunderstandings about deposit taking and lending services being under the same supervision as regulated digital asset businesses.

The SEC has already conducted a public hearing on the foundations of the proposed regulation in the second half of last year. The current draft regulation would serve to prohibit VASPs from accepting user deposits for lending and staking any digital assets. It would also prohibit VASPs from offering interest payouts on crypto holdings and advertising such services.

Stakeholders and interested parties are allowed to submit their feedback and suggestions on the draft regulation via its website or email until 7th April, 2023.

Over the last few months, there has been a slew of industry leaders with staking programmes that have been forced to liquidate their businesses, presenting risk to investors if financials aren’t in order.

Despite the buckling down on regulation in the cryptocurrency space, Thailand is not crypto averse. This announcement comes following news of Thailand’s cabinet offering crypto companies a tax break for issuing investment tokens. Ultimately, the move serves to protect investors from lending and staking-related issues of liquidity.