New Thai legislation prohibits cryptocurrency service providers from providing customers with investment and custody services related to profit opportunities and requires them to warn users about the risks associated with trading in digital assets.
The Thai Securities and Exchange Commission (SEC) published new rules for cryptocurrency service providers that prohibit them from offering any form of cryptocurrency-related returns.
Under the new rules, entrepreneurs, cryptocurrency exchange operators, cryptocurrency brokers, and traders must:
- provide users with information about the risks associated with cryptocurrency trading, which must include a warning about the potential loss of investment;
- receive confirmation from clients that they are aware of the risks associated with the services provided and are taking them knowingly;
- provide clients with comprehensive information about the security of their assets on the platform;
- develop an asset custody strategy and provide this information to the SEC.
Thus, Thai providers will not be able to provide, for example, cryptocurrency staking services, as well as lending with customer digital assets. The new rules will take effect on August 30, 2023.
Recall that the possible ban on a number of services related to the storage of digital assets in Thailand became known in September 2022.
