Earlier this month, on March 8, Thailand SEC (Securities and Exchange Commission) released a statement that crypto businesses’ staking and lending services will be subject to regulation.
Crypto enthusiasts are wondering if the statement means Southeast Asian nations are planning to ban staking and lending services on cryptocurrency exchanges in the region.
What If Bitcoin Lending And Staking Were Banned In Thailand?
An announcement (1) posted by the authorities on Wednesday stated that it was pursuing public comment on a proposed regulation that would prohibit “digital asset business operators'” or “virtual asset providers'” (VASPs) “provision of or participation with lending” and staking services, which the authority refers to as “crypto saving” or “crypto deposit taking.”
Because of the high risk of going bankrupt, the SEC does not allow VASPs to offer services like bitcoin staking or lending.
According to the SEC of Thailand:
“To protect digital asset investors and the general public from losses incurred in the event of service interruption or financial problems that may occur continuously or concurrently among service providers, as has lately been the situation for foreign partners, operators of digital asset businesses are prohibited from providing or supporting deposit taking and lending services.”
The Thailand SEC added that it hopes the public hearing on the proposed legislation will help dispel the widespread belief that unregulated crypto staking and lending services fall under the same regulatory umbrella as regulated digital asset enterprises.
Added by the SEC:
”
The proposed rules are meant to safeguard customers, reduce risks, and clear up any confusion about whether or not to deposit. Lending services fall under the same regulatory umbrella as enterprises dealing in digital assets.”
The SEC of Thailand has proposed a ban on staking and lending
The Thailand SEC has said that it will likely prohibit cryptocurrency staking and lending services. It has also indicated that a court meeting on the principle of the proposed legislation was held in September and October of last year.
According to the regulator, the proposed law would effectively forbid operators of digital asset businesses from accepting deposits for staking and lending, paying interest payments for storing digital assets, advertising or convincing users to use their services, and more.
The regulator has asked those who stand to benefit from the proposed rule to share their thoughts on it by April 7, 2023, via the SEC’s website or by email.
Meanwhile, the value of cryptocurrency exchanged worldwide has continued to fall in tandem with mounting bad press. At the time of writing, the Market Cap of the cryptocurrency market was $929 billion, down roughly 9% in the last 24 hours.
