• Thailand’s Securities and Exchange Commission (SEC) has announced that it is seeking public comments on a draft regulation prohibiting virtual asset service providers (VASPs) from providing or getting involved in any type of crypto staking and lending transactions.
• The proposed regulation aims to protect investors, reduce associated risks, and prevent a misunderstanding that deposit taking and lending services are under the same supervision as regulated digital asset businesses.
• The SEC has invited stakeholders and interested parties to submit their feedback and suggestions via the SEC’s website or email by April 7, 2023.
Thailand SEC Seeks Public Feedback on Crypto Lending, Staking Ban
Thailand’s Securities and Exchange Commission (SEC) is preparing to hold a new public hearing on a potential ban on staking and lending services in the country. Thailand’s SEC officially announced on March 8 that the authority is seeking public comments on a draft regulation prohibiting virtual asset service providers (VASPs) from providing or getting involved in any type of crypto staking and lending transactions.
Proposed Regulation Aims to Protect Investors
According to the SEC’s policy, VASPs should not be allowed to deploy users’ deposits and provide lending services to prevent possible damage to investors in the case of services’ termination. Additionally, the draft regulation is expected further to clarify the scope of supervision of digital asset businesses because they are currently not fully supervised. The proposed regulation aims to provide greater protection to investors, reduce associated risks, and prevent a misunderstanding that deposit taking and lending services are under the same supervision as regulated digital asset businesses.
Comment Period Now Open
The authority has invited stakeholders and interested parties to submit their feedback and suggestions via the SEC’s website or email by April 7th, 2023.
Ongoing Crisis In Crypto Lending Industry
The news comes amid the SEC of Thailand beefing up the country’s cryptocurrency rules in response to an ongoing crisis in crypto-lending industry. Many major industry lenders — including Voyager Digital, Celsius Network, Genesis Global, Babel Finance and Hodlnaut — have encountered serious liquidity issues amid an ongoing crypto bear market pushing some firms towards restructuring or liquidating their business.
Gemini Facing Lawsuit for Alleged Tether Involvement
Gemini – a major crypto exchange founded by Tyler & Cameron Winklevoss – is also facing lawsuit for its alleged involvement with Tether stablecoin issuer Bitfinex after allegedly receiving $1 billion worth of USDT tokens over several years without disclosing these activities with its customers properly