Last Updated on 3 months by John Piper
The Securities and Exchange Commission of Thailand (SEC) is asking the public for input about a possible ban on crypto lending and staking.
SEC has announced that it is reviewing a draft regulation to prohibit virtual asset service providers from participating in crypto lending or staking transactions. In order to protect investors from the possibility of services being shut down, VASPs are prohibited from depositing funds and lending to users.
SEC proposes regulation to clarify how cryptocurrency and digital asset businesses are monitored in light of an industry that isn’t fully supervised in the US. The regulation, according to the SEC would offer greater protection to investors and reduce risks. It also prevents misunderstandings regarding deposit taking and lending services being subject to the same supervision as regulated financial asset businesses.
In the second half last year, the SEC held a public hearing about the foundations of the regulation. The draft regulation currently in development would prohibit VASPs accepting deposits from users for lending or staking digital assets. It would also ban VASPs offering interest payouts for crypto holdings or advertising such services.
Up to 7 April 2023, interested parties and stakeholders can submit feedback and suggestions via the website or email.
In the past few months, several industry leaders who were involved in staking programs have had to liquidate their businesses. Investors could be at risk if they don’t have enough money.
Thailand isn’t crypto-averse despite the fact that it has been slowing down in regulating the cryptocurrency industry. This announcement follows news that Thailand’s cabinet offered a tax break to crypto companies for issuing investment tokens. The move is intended to protect investors against liquidity-related lending and staking issues.
Coin Insider’s first article, Thailand’s SEC Wants to Move Forward with Crypto Staking Ban, appeared first on Coin Insider.