Thailand’s Securities and Exchange Commission (SEC) recently decided to ban cryptocurrency companies from offering staking and lending services. The main reason behind doing so was to protect traders from the potential risks associated with cryptocurrency lenders.
Many prominent crypto lenders have also recently suffered from liquidity issues due to the market downturn. The decision to ban “deposit services” involves paying back depositors and was created primarily to protect traders from the risks associated with cryptocurrency lenders.
Cryptocurrency lenders such as Celsius Network and Babel Finance, which offered lending services, have frozen withdrawals in the past few months due to an industry-wide decline.
Market movers such as Bitcoin and Ethereum have lost more than 50% of their market value since early 2022. Zipmex is also one of the distressed exchanges that has stopped withdrawals. , Singapore, Thailand, Australia and Indonesia.
The move comes after the crypto exchange faces bankruptcy
Liquidity issues have been a concern for cryptocurrency exchanges this year, especially given the industry is reeling under difficult conditions.
The exchange reports severe liquidity problems in 2022. Some lenders had planned to offer higher interest rates to depositors, but faced bankruptcy as the market crashed.
Prohibits crypto operators from accepting deposits of digital assets and then using those digital assets to borrow or invest and pay depositors. Prohibit advertising or solicitation to the general public, or conduct activities in support of deposit or lending services. Digital operators are prohibited from receiving digital assets and returning them to depositors.
Thailand’s SEC also conducted a study on losses faced by the public. We have received feedback about the impact caused by Zipmex through an online forum.
Zipmex withdrawals have now resumed for Thai customers, but this has not taken the exchange off the SEC’s radar.
Current status of Zipmex
Thailand’s SEC has started getting involved in liquidity issues faced by exchange Zipmex since July 2022.
At that time, Zipmex had a strong presence in Southeast Asian countries. I had just stopped making deposits and withdrawals on the platform.
At this time, Zipmex is working closely with the SEC to ensure full compliance with required standards and security measures.
The SEC has also decided to introduce strict advertising rules for cryptocurrency companies operating in the country from October 1st.
Businesses should cut down on advertising by promoting cryptocurrencies directly on their “official channels” and their websites, and they should provide advertising and spending details.
This includes the role of social media influencers and bloggers, and our terms with the SEC.
Thailand SEC Decides To Ban Crypto Firms Offering Staking And Lending Services
Source link Thailand SEC Decides To Ban Crypto Firms Offering Staking And Lending Services