Thailand's Securities and Exchange Commission (SEC) has banned crypto organizations from offering staking and lending services.
The decision was made to protect traders from the risks affiliated with crypto lenders after the crash of crypto lending platforms over the past few months. Depositary services will be prohibited alongside paying returns to depositors.
The announcement was published on the regulator's website stating a ban on staking and lending services from the “digital asset business operators” to protect the general public from the risks associated with “transaction providers”.
Following the crypto market downturn many crypto exchanges and crypto lenders like Celsius Network and Babel have frozen their withdrawals.
Last week, Thailand’s SEC filed a police complaint against the exchange after it failed to provide transactional information before a deadline and was asked to provide further insight into the withdrawal freeze.
Recently, hand in hand with prohibiting staking and lending services and enforcing tighter regulation, Thailand also outlined new rules on crypto advertisements to take control of crypto marketing in public places.