Thailand’s SEC bans crypto lending and staking in the country

The agency explained the need for restrictions by the liquidity problems of foreign companies that have been observed in the past few months

16.09.2022 - 09:45

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What’s new? The Securities and Exchange Commission (SEC) of Thailand has banned local cryptocurrency companies from providing staking and lending services to customers. The regulator hopes the restrictions will protect traders and “minimize risks to the general public when interacting with the sector.” The SEC explained that the ban is necessary because many foreign companies have experienced liquidity problems in recent months. Representatives of the commission added that interested parties can comment on the ban until October 17.

Press release by Thailand’s SEC

What happened earlier? On July 1, the SEC of Thailand revoked the license of the local unit of crypto exchange Huobi. This came after the platform failed to bring the systems and staff operations in line with regulations.

In August, Thai banking group SCB terminated its deal to buy cryptocurrency exchange Bitkub. The reason for the cancellation was that the platform was in the process of solving various issues in accordance with the recommendations and orders of Thailand’s SEC.

On September 7, the SEC of Thailand filed a complaint with the Royal Thai Police against cryptocurrency exchange Zipmex and its local co-founder and CEO Akalarp Yimwilai. The regulator began collecting information on Zipmex transactions after the exchange suspended withdrawals on July 20.

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