Providers of crypto services (VASP) in Thailand will be barred from using clients’ funds for lending and investment. This follows the new guidelines from the local SEC.
The initiative is aimed at strengthening investor protection. The new rules will take effect on July 31, 2023.
The regulator published the draft guidance for consultation with stakeholders in September 2022 after the collapse of lending platformsBlockFi andCelsius Network.
VASPs will also be obliged to warn about risks associated with trading digital assets.
All platforms must display the following message:
“Cryptocurrencies carry a high risk. Please conduct thorough due diligence, as you may lose your entire investment.”
Clients must see the warning and sign an acknowledgement of risk, in accordance with the rules.
Earlier in January 2023, the Commissiondemanded that VASPs specializing in custodial services create a digital wallet management system.
Earlier, the Monetary Authority of Singapore obliged local bitcoin exchanges to transfer clients’ digital assets to trusts for custody by the end of the year.