Thai SEC Plans to Ban Crypto Lending Services

Thailand’s Securities and Exchange Commission (SEC) announced on Thursday that it is planning to ban crypto exchange platforms from offering staking and lending services. Per the announcement, the move is aimed toward protecting investors against the risks associated with such services.

Thailand Plans Ban on Crypto Lending Services

The Thai SEC said that it has opened a public hearing on the planned ban and those interested can express their opinions until October 17.

Under its plan, the commission stated that it would prohibit crypto asset providers from taking deposits of digital assets to borrow or invest and pay depositors with returns. 

The SEC stressed that providers will be prohibited from accepting crypto assets by paying returns to depositors “even if such returns do not come from taking advantage of the digital assets deposited.”

The commission also stated that crypto exchanges will be prohibited from engaging in any activities including advertising or public solicitation which might promote staking or lending services to the general public.

The decision by the Thai SEC comes after several crypto lending firms halted withdrawals due to the recent market crash. Lenders such as Celsius and Voyager have not only suspended withdrawals on their platforms but have also filed for bankruptcy.

Zipmex, a Thailand-based crypto exchange, also froze clients’ withdrawals on its platform in July due to market conditions.

The Thai SEC recently filed a police complaint against the exchange and its co-founder Akalarp Yimwilai for failing to submit transactional information related to its business and operations, including wallets used to store customers’ assets.

Thailand Takes Strict Measures on Crypto

Meanwhile, Thailand has always been strict in its dealings with the crypto sector. In January, the Thai Finance Ministry said it intends to levy a 15% capital gains tax on crypto traders. However, due to backlash from investors, the plan was dumped.

In March, the Thai SEC banned the use of crypto assets as a payment method for goods and services, saying that it threatens the nation’s financial system and economy. 

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