Thailand Implements Stricter Rules For Crypto Businesses

In a recent meeting, the Board of Directors of the Securities and Exchange Commission (SEC) passed resolutions to enhance regulations and disclosure requirements for cryptocurrency business operators in Thailand. These measures aim to improve investor protection and mitigate the risks associated with cryptocurrency trading.

The Thai government requires that cryptocurrency exchanges and others must publicly disclose the risks that may arise from trading cryptocurrencies; it is prohibited to provide digital assets deposited by users for loans or investments, and to pay depositors returns, and related…

— Wu Blockchain (@WuBlockchain) July 3, 2023

Risk Disclosures Mandates

One of the resolutions approved by the SEC mandates that cryptocurrency business operators must disclose risk warnings related to cryptocurrency trading. This requirement will apply to cryptocurrency exchange operators, cryptocurrency brokers, and cryptocurrency traders. The risk warning message, which states, “Cryptocurrencies carry a high level of risk. Please study and understand the risks of cryptocurrencies thoroughly. You may lose the entire amount of your investment,” must be clearly visible to users. Additionally, operators are obligated to inform users about the results of the investment suitability assessment and provide information on appropriate investment proportions.

The SEC has also prohibited digital asset business operators from providing or supporting deposit-taking and lending services, with a few exceptions as specified in the announcement. The restrictions outlined in this resolution will come into effect on August 30, 2566. Digital assets cannot be used for lending or investment purposes, and operators are prohibited from offering returns to depositors based on digital asset deposits, unless it is within the framework of promotional activities defined by the SEC.

Furthermore, the SEC emphasized that digital asset business operators are not permitted to advertise or solicit the general public to support deposit-taking and lending services that violate the aforementioned regulations.

These new regulations reflect the SEC’s commitment to ensuring the integrity of the cryptocurrency market and safeguarding investor interests. By enhancing disclosure requirements and restricting certain activities, the SEC aims to create a more transparent and secure environment for cryptocurrency trading in Thailand. The SEC has published the detailed criteria for these regulations in the Government Gazette, providing clear guidance for cryptocurrency business operators to comply with the new requirements.