Thailand’s Securities and Exchange Commission (SEC) has taken measures to ensure investor protection when dealing with digital asset service providers. On September 1, 2022, the SEC approved the requirement that cryptocurrency business operators disclose security warnings about the risks of trading cryptocurrencies as part of their services.
The warning message, along with the disclosure of the outcomes of the investment suitability assessment and appropriate asset allocation, must be made clear and prominently displayed. According to the rules, service providers must ensure customers consent and understand the risks before using their services.
The new guidelines also restrict the deposit and lending services provided by digital asset businesses. With the exception of certain pre-approved promotional activities, these rules forbid the provision or support of such services beginning on August 30. It is strictly forbidden for any entities other than businesses dealing in digital assets to promote or otherwise influence deposit-taking and lending services.
The Thai SEC firmly believes that these measures will lead to greater investor protection when trading digital assets.
