Thailand Bans Crypto Companies That Use Client Assets

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Thailand bans crypto companies from using client assets; Belarus wants to ban P2P cryptocurrency transactions; New rule from Singapore to crypto exchanges!

Thailand’s Securities and Exchange Commission (SEC) has taken action to protect investors. Thailand SEC has published new rules for digital asset service providers. Nowadays countries make a decision about crypto. Some of them crypto-friendly, some of them not.

After Singapore, moves to protect investors started to come from Thailand. The new rules published by Thailand drew attention to the risks associated with crypto trading by digital asset service providers. It was stated that the message that crypto platforms by providing services should show to their customers is as follows:

Cryptocurrencies have a high level of risk. Please know enough about the risks of cryptocurrencies. Because you may face big losses.

Along with the trading risks waiver, the new guidelines prohibit service providers from using clients’ funds for lending and investing.

However, the Thai SEC has banned crypto lending services in the country. Thus, crypto platforms are prohibited from offering any returns on cryptocurrencies deposited by customers. The aim of the SEC is to increase the protection of investors against the risks of credit services. In addition, the new regulations are expected to enter into force from 31 July 2023.

New rule from Singapore to crypto exchanges!

Singapore started to take some measures to ensure the protection of funds after the FTX disaster in November. The Asian country is preparing to require cryptocurrency exchanges to keep customer assets in a safe until the end of the year.

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Singapore took action to take some measures to protect individual investors.

The Monetary Authority of Singapore (MAS) said on July 3 that it will also implement the government’s proposal to ban lending and staking for individual investors.

With his statement, MAS drew attention to the extremely high risk of trading crypto assets. However, sharing his thoughts on the speculative nature of the crypto industry, MAS emphasized that regulations alone will not be enough to protect consumers.

On the other hand, the Monetary Authority of Singapore also warned investors to be as careful as possible when trading.

Belarus wants to ban P2P cryptocurrency transactions

Belarus is working on legislative changes to ban peer-to-peer or P2P transactions in cryptocurrencies like Bitcoin (BTC).

The Ministry of Foreign Affairs (MFA) of the Republic of Belarus recently published an official announcement on Telegram about new legislation that will prohibit P2P crypto trading for individuals.

Noting that the rate of cybercrime is high in Belarus, an official stated that local prosecutors have stopped the activities of 27 citizens providing illegal crypto trading services since the beginning of the year. It was stated that the total illegal income of these people reached approximately 22 million Belarusian rubles ($8.7 million).

Belarus takes action to ban P2P transactions

The foreign ministry argued that crypto P2P services are in demand among scammers who cash out stolen funds and transfer money to organizers or participants in criminal schemes.

To eliminate such illegal activities, the MFA plans to ban investors from P2P and only allow crypto exchanges through exchanges registered in the Belarusian High-Tech Park (HTP).

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The State Department is working on legislative innovations that prohibit crypto trading between investors. For transparency and control, citizens will be allowed to conduct such financial transactions only through HTP exchanges.

The authority also noted that it plans to implement a practice similar to the currency exchange procedure, which would make it impossible to withdraw money earned through illegal activities.

In response to the news from Belarus, many crypto enthusiasts questioned the government’s authority to ban P2P cryptocurrency trading.

Thailand bans crypto companies from using client assets; Belarus wants to ban P2P cryptocurrency transactions; New rule from Singapore to crypto exchanges!