The Thai government will make another attempt to regulate the cryptocurrency industry. This time, Thailand’s SEC turned its attention to Decentralized Finance (DeFi) projects.
The Thai Securities and Exchange Commission (SEC) said any DeFi-related activity may require a license from the financial regulator in the near future. The SEC noted that the new rules will primarily target the DeFi protocols that issue tokens.
Another regulatory initiative, apparently, is related to the release by the DeFi protocol of Tuktuk Finance of its own token on the smart contracts platform operated by the popular Thai cryptocurrency exchange Bitkub. The price of the token skyrocketed to “several hundred dollars,” and then plummeted to $ 1 in just a few minutes.
According to the platform’s official website, the total value of cryptoassets blocked in the protocol was $ 18 million, with the TUK token trading at $ 1.93, giving the project a market capitalization of $ 7.1 million. The Thai SEC’s statement was the first time a regulator has targeted DeFi.
“The issuance of digital tokens must be authorized and controlled by the Securities and Exchange Commission, and the issuer must disclose information and offer coins through token portals licensed under the Digital Assets Ordinance,” the agency said in a statement.
Niran Pravithana, CEO of investment app Ava Advisor, said it makes sense as there are many fraudulent tokens issued and criminals can operate through messaging apps like Telegram and manipulate token prices.
In early May, it became known that the Thailand Anti-Money Laundering Office (AMLO) will oblige users of cryptocurrency exchanges to undergo KYC procedures. Recall also that in April KBank and the Thai Stock Exchange began exploring DeFi lending opportunities.
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