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Thailand’s Securities and Exchange Commission has announced new guidelines that will require digital asset service providers to warn potential investors about the risks associated with trading or investing in cryptocurrencies. According to the regulator, these warnings must be displayed prominently on all regulated digital asset platforms starting from July 31.
The Importance of Educating Investors
In its statement issued on July 3, the securities regulator emphasized the need for prospective investors to have a clear understanding of the risks involved in cryptocurrency investments. The guidelines aim to ensure that investors are fully aware of the high-risk nature of cryptocurrencies.
The Thai SEC guidelines state, “Cryptocurrencies are high-risk. Please study and understand the risks of cryptocurrencies thoroughly because you may lose the entire amount invested.” The warning will serve as a reminder to users that investing in cryptocurrencies carries inherent risks and may result in financial loss.
New Restrictions on Digital Asset Business Operators
In addition to the risk warning requirements, the guidelines also impose restrictions on digital asset business operators starting from August 30. These operators will be prohibited from providing services or supporting deposit-taking and lending services within the crypto industry.
This means that Thai crypto businesses will no longer be allowed to offer interest on deposits or lend user funds. Furthermore, any advertising or marketing efforts promoting crypto assets in a manner that encourages deposit-taking and lending services will be strictly prohibited.
A Continuation of Regulatory Measures
The release of these new guidelines follows the SEC’s previous requirement that digital asset service providers must warn prospective investors about the risks associated with cryptocurrency investments. This move is part of Thailand’s ongoing efforts to regulate the crypto industry and protect investors from potential financial harm.
By implementing these regulations, the Thai SEC aims to create a safer environment for cryptocurrency trading and investment activities. The intention is not to discourage participation but rather to ensure that investors are well-informed and aware of the risks they are taking.
