Thailand’s SEC Implements Investor Protection Rules for Digital Asset Service Providers
Thailand’s Securities and Exchange Commission (SEC) has introduced new regulations aimed at enhancing investor protection within the digital asset industry. The guidelines mandate digital asset service providers to prioritize risk disclosure and prohibit the use of customer funds for lending or investment purposes.
Under the new rules, digital asset service providers are required to prominently display a warning message that highlights the high risks associated with cryptocurrency trading. The message must be clearly visible and state: “Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly because you may lose the entire investment amount.” Before accessing the services, users must provide consent and acknowledge the risks.
In addition to the risk disclosure requirement, the guidelines prohibit service providers from utilizing customers’ funds for lending or investment activities. This ban on crypto lending services prevents platforms from offering any form of return on customers’ deposited cryptocurrencies. The SEC’s objective is to bolster investor protection by minimizing the risks associated with lending services.
The new regulations are scheduled to take effect from July 31, 2023, ensuring that digital asset service providers comply with the enhanced investor protection measures set forth by the SEC.