Regulations keep on coming into the crypto space and I must say we don’t like it. But what to do? Nothing but just comply with them until the crypto space is well organized or respected. Thailand’s SEC is one of the biggest hindrances to the growth of the crypto community in that country as it’s always trying to regulate and control the services that are provided or are being provided by the crypto exchanges.
In addition to its mass rules for exchanges, it has come out with another regulation which crypto exchanges have to follow if they want to operate in the country. In September of last year, it announced that all crypto exchanges in their country should not provide staking services for users or customers in the country. In addition to the non-staking rule, it also announced a stricter set of rules for the advertisement of products by the crypto exchanges.
Regulations For Staking and Advertisements
Crypto users understand how important staking is and a lot of users love the idea of staking. When you stake your assets the amount of interest on it over a long period is always worth it. But the SEC seems to think by doing this it will stop many of the exchanges from running away with user's funds.
Apart from it being beneficial to the customers it is also very beneficial to the exchanges as they can use your staked coin for something else while you keep it staked.
From one regulation to the other and things keep on heating up. The advertisement rules are the height of it. According to the SEC before an exchange advertises a new investment to its users it should also clearly state how dangerous it is to involve yourself with that type of investment. It should be able to tell its customers the risk that comes along with investing in the product they are putting out there.
After telling users about the risk they should also provide a balanced view of products. They should also make public the details of the ads and the use of influencers to the regulator.
New Regulations for digital wallets providers
As if all this is not enough it has just passed a new law that allows crypto exchanges to provide something like a safe passage to customers who own a digital wallet with them. According to them, the exchange should be able to provide a contingency plan in case anything happens along the way.
The contingency plan will go on to affect how the digital wallets and their keys are managed by the exchanges. This law has already been passed and put into the bill. Now, all exchanges in Thailand will have to follow this if they wanna function in Thailand. If they don’t they either face a heavy fine or risk being shut down in the future.
More and more regulators will keep on asking and pushing for more regulations to be put out there since bad actors are in the space. Since the collapse of exchanges like FTX, they have been forced to make stricter rules to help protect their citizens.
Well, going forward the SEC will continue to be a problem for exchanges until the bad actors stop acting bad.
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