Will Thailand ban crypto betting and lending? Here’s what we know

Thailand bans crypto staking and lending?

Regardless of the state of the crypto market, regulators are still making their mark on the industry by using their respective powers. On March 8, Thailand’s Securities and Exchange Commission (SEC) published a notice targeting crypto betting and lending services issued by crypto firms.

The announcement has raised questions and speculation among the crypto community about whether the Southeast Asian country wants to ban cryptocurrency betting and lending on crypto exchanges in its region.

Will Thailand ban crypto betting and lending?

according to announcement published by the regulator on Wednesday, it is asking for public feedback on a draft regulation to “prohibit digital asset operators” or virtual asset providers (VASPs) from “providing or engaging in lending” and betting services that the authority calls “cryptosavings” or “taking crypto deposits”.

According to SEC guidelines, VASPs are not allowed to offer crypto betting and lending services due to the likelihood of the firm falling into insolvency.

The Thailand SEC noted:

Operators of digital assets are not allowed to offer or support deposit and lending services in order to prevent possible damage to digital asset investors and the public in the event of disruptions or financial problems that may occur on a continuous or simultaneous basis among service providers, as has recently been the case for foreign counterparties.

In addition, the Thailand SEC further stated that the draft regulation that it seeks public consultation is also expected to clarify the common misconception that the supervision of regulated digital asset businesses is under the same scope as crypto betting and lending services which are currently not supervised at all.

The SEC added:

The proposed regulation aims to provide greater protection to investors, reduce associated risks and prevent a misunderstanding that deposit and lending services are under the same supervision as regulated digital asset businesses.

Thailand’s SEC proposes a ban on betting and lending

While the Thailand SEC expressed its likely ban on crypto betting and lending services, the regulator further mentioned in the announcement that it had since carried out a public hearing on the principle in the proposed regulation between September and October last year.

The regulator stated that the draft regulation would essentially prohibit business operators of digital assets from accepting deposits for betting and lending, as well as paying regular interest for depositing digital assets and advertise or persuade of crypto betting and lending services.

So far, the authority has invited stakeholders and parties interested in taking part in the proposed regulation to submit their comments and suggestions via the SEC’s website or email by April 7, 2023.

Meanwhile, the global crypto market has only continued to plunge as negative news intensifies. The global crypto market capitalization has fallen below $1 trillion with a value of $970 billion at the time of writing, down nearly 7% in the last 24 hours.

Featured image from Pexels, chart from TradingView