The Securities and Exchange Commission (SEC) issued regulationsRegarding Disclosure of Cryptocurrency Trading Risk Warnings of Operators for traders to get informationenough about the risks of cryptocurrencies And issuing regulations prohibiting digital asset business operators from providing or supporting digital asset custody services with returns to depositors and lending (deposit taking & lending) to increase investor protection.from the risks of such services
According to the SEC at its meeting No. 12/2022 on September 1, 2022 approved the determination of
Cryptocurrency Entrepreneurs Disclose Risks of Cryptocurrency Trading And set to prohibit digital asset business operators from providing services or supporting deposit taking & lending services and at the meeting No. 16/2022 on December 1, 2022 and No. 9/2023 on May 11, 2023 resolved to approve Updating the guidelines for the disclosure of risk warnings for cryptocurrency trading to be more appropriate.
Securities and Exchange Commission Therefore, the guidelines for both of these matters have been prepared. which has already been announced in the Royal Gazette
The important points are as follows:
- Disclosure of the Risk Warning of Cryptocurrency Trading (Effective on July 31, 2023) requires operators of cryptocurrency trading centers Cryptocurrency Broker and cryptocurrency traders Must disclose a warning about potential risks associated with trading cryptocurrencies. with the message as follows:Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly. because you may lose the entire investment amount”, where the warning message must be clearly visible. along with the notification of the investment suitability assessment results and the allocation and determination of the appropriate investment proportion (basic asset allocation) before the customer uses the service. And the business operator must arrange for the service users to give consent and acknowledge such risks before using the service.
- prohibiting digital asset business operators from providing or supporting deposit taking & lending services There are some exceptions as announced. (Effective on 30 August 2023) which can be summarized as follows:
- Do not accept digital asset deposits. and bring the deposited digital assets to borrow or invest and pay returns to depositors
- Do not accept digital asset deposits. by giving or proposing to give returns from depositing digital assets or other returns to depositors (such as from the company’s marketing budget), unless it is in the nature of sales promotion according to the rules prescribed by the SEC. It is forbidden to advertise or persuade the general public or do any other act in the manner of supporting the deposit taking & lending service under (2.1) and (2.2) of the service provider or other persons.
Note: related notices
Notification of the SEC No. Kor Thor. 6/2566 Rules, Conditions and Procedures for Undertaking Digital Asset Business (No. 20) Link https://publish.sec.or.th/nrs/9765s.pdf
Source: press release
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