Thailand’s Securities and Exchange Commission (SEC) has laid out new rules with regards to digital asset service providers which will require them to produce adequate warnings which highlights the risks associated with crypto trading.

According to the Thai SEC, all platforms are legally required to present the following message:

“Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose the entire investment amount.”

The financial watchdog of the Asian nation stressed that the message must be clearly visible and readable before customers can utilize the crypto-related services, so as the companies direct this message to customers for clear consent and acknowledgement of the matter at hand.

Apart from that, the new guidelines also prohibit service providers from utilizing the funds of customers for lending or investment, since the Thai SEC has effectively banned crypto lending services as a whole.

The move is believed to attempt to boost investor protection from the risks of lending services, and the new regulations are expected to come into effect starting July 31 of the current year.

Sources:

https://cointelegraph.com/news/crypto-thai-sec-bans-the-use-of-customer-crypto-assets-for-lending-and-investment

https://beincrypto.com/thailand-sec-guidelines-crypto-trading-lending/

https://www.sec.or.th/TH/Pages/News_Detail.aspx?SECID=10018