Thailand plans to prohibit cryptocurrency operators from providing deposit and loan services

Thailand plans to prohibit cryptocurrency operators from providing or supporting cryptocurrency deposit and loan services, and strengthen the supervision of digital asset transactions.On September 15 local time, the Securities and Exchange Commission of Thailand (SEC) issued a press release saying that cryptocurrency operators have been prohibited from providing deposit and loan services to protect cryptocurrency users and the public from the risk of such transactions.The SEC said that many cryptocurrency platform operators in Thailand and other countries were forced to suspend their services and users' withdrawal of digital assets due to liquidity risks. According to foreign media reports, due to the continued downturn in the cryptocurrency market, several cryptocurrency lending institutions, including Celsius Network and Babel Finance, and cryptocurrency exchanges providing loan services, have suspended user withdrawals in the past few months. The SEC emphasized that the ban would prevent users from mistaking the deposit and loan services provided by licensed cryptocurrency operators for being under supervision, so as to protect users and the public from commercial risks of operators.Specifically, the ban includes prohibiting cryptocurrency operators from providing digital asset deposit, loan or investment businesses and paying returns to depositors. At the same time, unless complying with the relevant regulations of the SEC, cryptocurrency operators shall not hold digital assets by paying returns to depositors.On the same day, the Securities and Exchange Commission of Thailand (SEC) issued a press release, saying that at the recent meeting, it proposed the principle of improving the regulatory method of digital asset trading to optimize the supervision of product risk level.According to the recent tracking of the development of the digital asset market, the SEC found that, in the digital asset market, most transactions do not have the relevant foundation or business support, so they are usually speculative, which makes their prices fluctuate greatly and may face higher risks than products in the traditional capital market.