The Securities and Exchange Commission of Thailand (SEC) has introduced new guidelines to strengthen investor protection in the cryptocurrency industry. The SEC has mandated clearer disclosure of risk warnings and restrictions on deposit and lending services from operators of digital asset businesses.

The rules, approved during meetings in September, December 2022, and May 2023, require operators of cryptocurrency businesses to explicitly inform potential investors of the inherent risks involved in trading. Clients must acknowledge these risks and consent before commencing trading, following an assessment of investment suitability and appropriate investment ratios.

The second part of the new regulations prohibits digital asset business operators from providing or supporting deposit taking and lending services, with certain exceptions. These rules will take effect on August 30, 2023 and prohibit offering returns on deposits of digital assets unless they are included in the promotional activities defined by the SEC.

Furthermore, the regulations prohibit any action aimed at persuading or advertising deposit-taking and lending services to the general public, including those provided by other entities.