Thai SEC Prohibits Local Crypto Firms From Offering Staking and Lending Services

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Thai SEC Prohibits Local Crypto Firms From Offering Staking and Lending Services:

Thailand’s Securities and Exchange Commission (SEC) has prohibited domestic cryptocurrency platforms from offering staking and lending services to clients.

The ban is to protect traders and the public from risks related to such activities.

The South East Asian country has not been sleeping in the digital asset movement lately.

At the beginning of the year, the local authorities displayed intentions to start tax in bitcoin and alternative coins, while later, they outlawed crypto payments.

According to a press release, Thailand’s SEC banned local cryptocurrency firms from offering or supporting digital asset depository services such as staking and lending.

According to the regulatory body,  the development will ensure maximum protection for local investors and minimize the general public’s risks when interacting with the sector.

In addition, the financial watchdogs said enforcing such a ban is essential since many foreign companies have faced liquidity issues in the past several months.

One example is a DeFi platform which is one of the largest cryptocurrency lenders – Celsius Network.

In June, it ceased withdrawals, swaps, and transfers between accounts, citing “severe market conditions.

A month later, the firm filed for Chapter 11 bankruptcy protection with the Southern District of New York.

Celsuis is not alone in this as another cryptocurrency lending platform – Babel Finance- also paused all withdrawals due to liquidity issues.

Shortly after, it was rumoured to have delayed its debt repayments after reaching agreements with major clients and counterparts.

Aside foreign organizations, Thailand has a representative among the distressed crypto entities also.

In July, a digital asset exchange – Zipmex – suspended clients’ withdrawals on its platform, while a week later, it filed for moratorium relief to prevent its creditors from making claims for the next six months, cryptopotato revealed.

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