Thailand’s Securities and Exchange Commission (SEC) has proposed new regulations that could ban cryptocurrency staking and lending. According to a report from local news outlet The Bangkok Post, the regulator has opened up a public hearing for the proposed rules, which would apply to retail investors.
The proposed regulations would prohibit cryptocurrencies’ use for staking, which allows investors to earn interest on their holdings, and for lending, which involves investors loaning out their digital assets to earn interest. The SEC claims that the use of cryptocurrencies for staking and lending carries risks, including price volatility and security issues.
The SEC also proposed a 45-day public consultation period, which began on March 12, during which stakeholders can submit their feedback on the new regulations. If the proposed rules are adopted, Thailand would join several other countries in implementing restrictions on crypto staking and lending.
The Thailand SEC‘s move comes after a recent surge in interest in cryptocurrency staking and lending in Thailand, with many investors seeking to earn passive income from their digital assets. However, the regulator has expressed concern that the lack of clear regulations and oversight in the sector could expose investors to significant risks.
It remains to be seen whether the proposed regulations will be implemented in Thailand, as there are still several stages of the regulatory process to go through before they are finalized. However, investors and stakeholders in the country’s cryptocurrency industry are likely to closely monitor developments in the coming weeks and months.
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