The Securities and Exchange Commission of Thailand (SEC) has banned crypto operators from providing or supporting deposit and lending acceptance services.
according to press release by SEC, The decision against providing lending and betting services was approved to protect traders and the general public from the risks of these transaction providers.
Troubled Cryptocurrency Lenders Indicated
The Securities and Exchange Commission noted that at present, there are many foreign service providers that are experiencing liquidity problems. The association stated that troubled foreign deposit service providers should stop providing services and suspend digital asset withdrawals for clients.
Celsius, a cryptocurrency lender, has been hit with major repercussions after CEO Alex Mashinsky was accused of controlling trading strategy and placing trading orders based on false information. The company filed for Chapter 11 bankruptcy in July 2022 after closing debts owed to Compound, Aave and Maker.
Babel Finance, another cryptocurrency lender, lost $280 million while trading customer funds. The company was forced to suspend withdrawals amid liquidity pressures. Moreover, Zipmex – one of the prominent digital asset exchange platforms in the Asia Pacific region operating in Singapore, Thailand, Indonesia and Australia – has frozen withdrawals while facing financial difficulties caused by troubled crypto lender Babel Finance, with Zipmex facing losses of around $100 million. From Babylon Finance Fund.
After the crypto fallout from companies like Celsius, Babel, and Zipmex, the SEC has decided to do so Business operators of digital assets are prohibited, and advertising or solicitation of the same to the general public is also prohibited.
The Securities and Exchange Commission (SEC) recently imposed strict rules around crypto advertising and said that ads should clearly show the risks of investing in advertising and provide a balanced view of the risks and potential returns. In addition, the organizers must receive information about the terms of the advertisement. Operators will have 30 days to comply with the new rules.
The crypto fallout from Celsius, Babel and Zipmex posed a threat to investors as withdrawals were suspended. Recently, the Bank of Thailand warned commercial banks against “direct participation” in cryptocurrency trading, citing its high volatility and potential risks.