Monday, December 5, 2022
 

Thailand Moves to Ban Crypto Businesses Following Zipmex Crash

  • Following the collapse of crypto lending platforms, the Thailand SEC takes measures to ban crypto.
  • The SEC has begun a public hearing on the crypto ban and is now accepting comments until October 17.
  • Thailand crypto exchange Zipmex was also one of the crypto businesses that suspended customer withdrawals in July.

Following the collapses of crypto lending platforms in recent months, Thailand’s Securities and Exchange Commission (SEC) is getting ready to take the necessary measures.

The Thai SEC wants to make it illegal for crypto platforms to offer or support services for storing digital assets. According to a notification on its official website on September 15, the SEC has begun a public hearing on the subject and is now accepting comments until October 17.

The proposed prohibition covers many key aspects, including the ban on staking and lending services to protect traders and the general public from the “risks of such transaction providers.”

Additionally, the law will make it illegal for operators to accept deposits of digital assets on the promise of increased repayment, even if those funds originate from marketing budgets rather than the assets’ rising worth.

In recent months, companies like Celsius Network and Voyager Digital froze customer withdrawals before ultimately declaring bankruptcy. According to a report, the Thailand crypto exchange Zipmex was also one of the ill-fated crypto businesses that suspended customer withdrawals in July due to a “combination of circumstances beyond its control.”

The Thai SEC accused the crypto exchange and its co-founder Akalarp Yimwilai of breaking local laws and referred the case to the police. According to the authority, Zipmex did not comply with the country’s Digital Assets Act by providing information on digital wallets and cryptocurrency transactions.

Starting in October, the SEC will also impose strict advertising regulations on cryptocurrency companies doing business nationwide. Companies will be obliged to disclose information about their advertisements and spending, including the use of social media influencers and bloggers. They would be compelled to confine their Bitcoin promotion to “official channels” like their websites.

  • Following the collapse of crypto lending platforms, the Thailand SEC takes measures to ban crypto.
  • The SEC has begun a public hearing on the crypto ban and is now accepting comments until October 17.
  • Thailand crypto exchange Zipmex was also one of the crypto businesses that suspended customer withdrawals in July.

Following the collapses of crypto lending platforms in recent months, Thailand’s Securities and Exchange Commission (SEC) is getting ready to take the necessary measures.

The Thai SEC wants to make it illegal for crypto platforms to offer or support services for storing digital assets. According to a notification on its official website on September 15, the SEC has begun a public hearing on the subject and is now accepting comments until October 17.

The proposed prohibition covers many key aspects, including the ban on staking and lending services to protect traders and the general public from the “risks of such transaction providers.”

Additionally, the law will make it illegal for operators to accept deposits of digital assets on the promise of increased repayment, even if those funds originate from marketing budgets rather than the assets’ rising worth.

In recent months, companies like Celsius Network and Voyager Digital froze customer withdrawals before ultimately declaring bankruptcy. According to a report, the Thailand crypto exchange Zipmex was also one of the ill-fated crypto businesses that suspended customer withdrawals in July due to a “combination of circumstances beyond its control.”

The Thai SEC accused the crypto exchange and its co-founder Akalarp Yimwilai of breaking local laws and referred the case to the police. According to the authority, Zipmex did not comply with the country’s Digital Assets Act by providing information on digital wallets and cryptocurrency transactions.

Starting in October, the SEC will also impose strict advertising regulations on cryptocurrency companies doing business nationwide. Companies will be obliged to disclose information about their advertisements and spending, including the use of social media influencers and bloggers. They would be compelled to confine their Bitcoin promotion to “official channels” like their websites.

 

Latest news