Thailand’s proposed regulations aim to protect consumers in the digital asset market

Thailand's proposed regulations aim to protect consumers in the digital asset market

The Security and Exchange Commission of Thailand seeking public views on a draft regulation prohibiting digital asset business. Thailand’s decision comes when various state authorities worldwide are bringing up new proposed regulations.

SEC conducted a public hearing on proposed regulations in September 2022. This draft regulation will restrict the asset operators to accept deposits of digital assets from customers and lending, investing, staking, or employing such digital assets.

There are various other measures like a fake advertisement, and manipulation of audience views through distorted information. It will prohibit the use of these unethical practices and provide a safe and transparent atmosphere for asset management.

A similar meeting was held on 15 September 2022, when the Securities and Exchange Commission issued a strong statement against digital asset business operators. In that statement the SEC said, digital asset business operators are prohibited from accepting digital assets and bringing digital assets that are deposited to lend or invest and pay returns to depositors.

The South Asian country trying to bring effective regulations into their system so they can tackle any unforeseen potential scams in the future. On Jan. 17, the Thai Security and Exchange Commission issued regulations requiring virtual asset service providers (VASP) to establish a digital wallet management system to guarantee efficient custody. The new rules target crypto custodians or VASPs that provide crypto storage services.

They become more alarmed after detecting some irregularities in the crypto exchange Zipmex. The exchange has been providing digital asset management services without registration. Users will witness more developments in the near future from various SECs around the world. Due to emerging risks associated with digital asset management, almost every nation is looking forward to bringing effective regulatory frameworks. To protect its customers from any fraud it is necessary to bring these regulations.

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