By Shelly Melancon (Switzerland)
In its continued efforts to regulate the use and adoption of crypto assets in the country, the number one regulator in Thailand, the SEC is proposing new regulations to monitor custody services. In light of this, Thailand SEC is calling for contributions from the public, until towards the end of September. According to the top regulator, concerns over investors’ safety have prompted the proposed set of regulations.
Thailand SEC revealed this development in a Wednesday announcement, where it also noted that the regulations concerned ventures which provided custody services for cryptocurrencies. The proposed regulations are also said to include the custody of fiat money on crypto portfolios as well as the lending of cryptocurrencies, or interest accumulation.
Crypto Exchanges Will Not Gain from Investors Crypto and Fiat Assets
The Securities and Exchange Commission added that the regulations contained in the proposal will prohibit crypto exchanges from using the cryptocurrencies of investors and traders for the ‘gains of other users or customers’ or obtaining gains from the fiat and crypto assets of investors, including offering digital loans to other investors.
Except for the deposits in commercial banks, obtaining gains from the fiat assets of customers shall be outlawed, the proposal stated. However, the proposal did not exclude crypto ventures from charging commissions for storage services and transaction fees for trading activities.
Also included in the proposal are regulations that will guide activities such as withdrawing and transferring assets from crypto portfolios. These regulations will require crypto exchanges to adhere to ideals of “decentralized approval authority, multi-sign approval authority, and check and balance. The regulatory body noted that the same regulations will address the safety of investors and the issue of integrity of crypto exchanges, while ensuring that investors’ portfolios are correct and updated.
Thailand SEC is opening a window for input from members of the public until September 22nd. The regulatory body has been actively involved in creating and adopting regulations that will control widespread adoption of cryptocurrencies in Thailand.
Bank of Thailand Cautions Against Using Crypto for Payments
Earlier in March, the SEC deliberated on imposing $32,000 as the annual income threshold for making investments in cryptocurrencies. Following critiques from the public, it was forced to drop the idea. Also, in July, the Bank of Thailand issued warnings against the use of crypto for payments, highlighting the dangers it posed to Thais and the country’s economic and financial system.
It had further warned that Bitcoin, Ethereum and other crypto assets were not legal tender. In view of this, anyone who engaged in trading goods and services for cryptocurrencies, either as a sender or receiver, may likely be charged with money laundering, theft and price volatility.
The Bank of Thailand is also considering CBDC issuance and stated that a pilot program for the potential Digital Baht would begin by Q2, 2022. Meanwhile, in June, authorities at Thailand SEC placed a general ban on the trading of meme coins like Dogecoin, NFTs, fan-based tokens and tokens issued by crypto exchanges themselves.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.