Thailand SEC strong regulation is coming: DeFi project may need a license

DeFi projects may require licenses and authorizations.

Thailand SEC strong regulation is coming: DeFi project may need a license

Thailand’s financial regulator has turned its attention to decentralized financial DeFi.

According to a June 1 report in the Bangkok Post, Thailand’s Securities and Exchange Commission (SEC) announced that any DeFi-related activity may require a license from the financial regulator in the near future.

In the meantime, the SEC will particularly target DeFi protocols that issue tokens for stricter regulation. The regulator said, “The issuance of digital tokens must be authorized and supervised by the SEC, and issuers must disclose information and offer tokens through a token portal licensed under the Digital Assets Act.”

Recently, a DeFi project called “Tuktuk Finance” went live on BitKub, Thailand’s largest cryptocurrency exchange, and the price of its token, TUK, soared to several hundred dollars before plummeting to $1 within minutes. This was the trigger for this strong regulation of DeFi in Thailand.

In fact, several banks in Thailand are already exploring DeFi products.

In April this year, Kasikornbank (KBank), Thailand’s fourth largest bank, reportedly entered into a partnership with the Stock Exchange of Thailand to establish a DeFi program called Kubix. In addition, according to the person in charge, DeFi is an important exploration for KBank Group this year.

Earlier, the Central Bank of Thailand also said it was working on smart contracts and DeFi implementations for its national digital currency, the digital Thai baht.

Also in May this year, Brooker Group, a Thai listed financial advisory firm, made an announcement that the company currently holds about $35 million in digital assets and DeFi tokens, remains bullish on cryptocurrencies, and plans to allocate another $3 million for DeFi investments in the second quarter of 2021.

In addition to the regulation of DeFi, Thailand has issued several regulatory measures for the cryptocurrency market in 2021.

In March of this year, the Securities and Exchange Commission of Thailand held a hearing on crypto retail entry rules. At the hearing, the SEC evaluated what entry conditions should be imposed on retail investors opening new cryptocurrency trading accounts, including the net worth and annual income of crypto investors, as well as trading experience. And Thailand’s Anti-Money Laundering Office (AMLO) announced that as of July, cryptocurrency exchanges must use “dip-in” chip machines to verify the identity of new users.

In addition, the Bank of Thailand issued a stern warning about THT, a stable coin pegged to the Thai baht issued by Terra. Pruettipong Srimachand, assistant governor of the central bank’s legal team, said that any activity involving the stablecoin is considered illegal. Sources said the Bank of Thailand is expected to issue regulatory regulations on stablecoins this year.

Posted by:CoinYuppie,Reprinted with attribution to:
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