According to Thailand’s securities regulator, digital asset service providers will be required to warn prospective investors of the risks that come with trading or investing in cryptocurrencies. The guidelines also state that starting on Aug. 30, 2023, digital asset business operators will be barred from “providing services or supporting deposit-taking [and] lending services.”
The Crypto Risk Warning
Thailand’s Securities and Exchange Commission has announced new guidelines that require digital asset service providers to warn of “potential risks associated with trading cryptocurrencies.” According to the securities regulator, all regulated digital asset platforms are to supposed to start displaying this warning on July 31.
In its July 3 statement, the securities regulator added that the message must not only be visible but must ensure prospective investors fully understand the risks involved.
“Cryptocurrencies are high-risk. Please study and understand the risks of cryptocurrencies thoroughly. because you may lose the entire amount invested,” the latest Thai SEC guidelines state.
In addition to disclosing the potential risks, the guidelines state that starting Aug. 30 digital asset business operators will be barred from “providing services or supporting deposit-taking [and] lending services.” This means the Thai crypto industry participants will not be allowed to offer interest on deposits or lend user funds.
Similarly, the advertisement or marketing of crypto assets encouraging the general public to “act in the manner of supporting the deposit-taking [and] lending service,” will be prohibited.
The release of the latest guidelines by the securities regulator comes less than a year after the SEC approved a requirement stipulating that digital assets service providers are obliged to warn prospective investors of the risks involved.
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