• Thailand joins Singapore in banning crypto exchanges from offering lending and staking services to retail customers.
• The Thai Securities and Exchanges Commission introduced a mandatory trade risks disclaimer, as well as investor suitability assessments to determine how much users can invest in crypto.
• Singapore’s ban on crypto staking and lending services for retail customers is motivated by concerns about financial instability, high price volatility, cyber theft, personal data leakage and money laundering.
Thailand Joins Singapore in Banning Crypto Lending Services
Source: Pixabay Amid increased global scrutiny on crypto exchanges, Thailand joins Singapore among Southeast Asian countries to ban retail lending and staking services.
Thai SEC Prioritizes Investor Protection in New Crypto Exchange Rules
Like Singapore, the Thai regulator’s move demonstrates that it prioritizes investor protection. However, contrary to retail investors, the ban does not prohibit crypto exchanges from staking and lending crypto to institutional customers. In its exact words, the announcement affirmed that the ban applies to all “depository services that offer returns to depositors and lenders.” In addition, the Thai SEC introduced a mandatory trade risks disclaimer. Cryptocurrency exchanges must make the trading risks disclosures visible to customers in clear and comprehensive language. “Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly because you may lose your entire investment,” the disclaimer reads. Furthermore, crypto exchange operators must ensure that customers acknowledge the potential risks of crypto trading before consenting to use the services. Also, they must conduct investor suitability assessments to determine how much users can invest in crypto.
Thai Ban on Crypto Payments
The Thai regulator first banned crypto as a payment method in March 2022, effective April 1st 2022. The regulator cited concerns about the potential risks of financial instability that cryptocurrencies might pose on the country’s economy. It also underscored the risk of loss of value due to high price volatility, cyber theft, and personal data leakage as reasons for banning crypto payments. In addition, the Thai SEC said cryptocurrencies might aid money laundering.
Singapore’s Ban on Crypto Staking
Singapore’s ban on crypto staking and lending services for retail customers is motivated by concerns about financial instability