Thailand Securities And Exchange Commission For Staking And Crypto Guarantee Services

The Securities and Exchange Commission of Thailand prohibits staking and crypto lending services. (News Bitcoin)

JAKARTA Thailand's Securities and Exchange Commission (SEC) has reportedly banned crypto companies offering crypto-staking and lending services to users. This is intended as an effort to protect investors from the risks associated with crypto loans.

Previously, the SEC Thailand had checked how crypto companies operate. Shortly after, regulators released announcements regarding the ban on the two services crypto trading companies offer users.

Based on SEC information, crypto companies are not allowed to take digital asset deposits from investors, only to use the same asset to borrow and invest before providing profits to deposits. Regulators also prohibit all forms of advertising that can encourage staking or borrowing services in any way.

Alasan SEC Thailand Larang Staking dan Lending Crypto

The collapse of crypto-mining companies in recent months has had a negative impact on investors. As experienced by Celsius, crypto-mining platforms that collapsed some time ago. Celsius was forced to file bankruptcy due to the decline in the crypto market.

Prior to the bankruptcy filing, Celsius had frozen the funds of platform users so that they could not withdraw (withdrawal) or transfer funds from the loan platform to other addresses.

To anticipate similar incidents happening again, the SEC of Thailand took action to protect crypto investors. On the other hand, despite the market's declining decline as a fact that cannot be denied, some called lenders and exchanges are also not completely transparent with the suspension of their withdrawals.

In line with that possibility, regulators recently reported Zipmex to police. Police reports emerged after the exchange - which has entities spread across Asia - froze withdrawals in July. And according to a police report, the SEC Thailand said the exchange had failed to provide information about its transaction despite being given a deadline to do so.

Regulators also asked Zipmex to further explain the reason for the suspension of withdrawals in July. However, in all of this, Zipmex exchange insists that they are fully working with regulators. Zipmex also said it would not stop to ensure compliance with existing standards and security measures.