In an effort to regulate cryptocurrency trading within its borders, the Thai government has put in place stringent rules and regulations. Among the requirements is the mandate that all cryptocurrency exchanges and related businesses make full public disclosure of all the risks associated with the trading of cryptocurrencies.
This serves to protect traders from possible risks and enable them to be well-informed before they engage in any trade or investment. By doing so, the government is demonstrating its dedication to creating a safe and responsible trading environment in Thailand.
No lending and borrowing
In addition to that, the Thai government has implemented strict rules against the use of digital assets deposited by users for loans or investments. Moreover, they have forbidden any payment of returns to depositors, along with related advertisements. The main objective of these measures is to curb any occurrence of fraudulent activities and safeguard investors from incurring potential losses.
The Thai Securities and Exchange Commission (SEC) said that it is reinforcing the decision it took on September 1, 2022, concerning crypto asset trading disclosures.
A mandatory warning
The statement said that all crypto trading centers operating within the territory of Thailand must have the following message posted as a warning on their platforms:
“Cryptocurrencies are high-risk. Please study and understand the risks of cryptocurrencies thoroughly. because you may lose the entire amount invested.”
The statement further said that users of the platform must be made to acknowledge that they have gone through the warning disclosure and are aware of the associated risks with dealing with cryptocurrencies before they’re allowed to use any crypto services provided by the platform.
The release added that crypto platforms are not allowed to support lending and borrowing services. They also must not advertise such a service to the Thai public.