Thai SEC intends to ban crypto lending in the country

September 15, 2022 Coin Telegraph

The Securities and Exchange Commission of Thailand is preparing to take radical measures in the aftermath of the summer’s crypto lending platforms’ crashes.

The Securities and Exchange Commission (SEC) of Thailand is preparing to take radical measures in the aftermath of crypto lending platforms’ crashes experienced in Summer 2022. Thai SEC plans to prohibit crypto platforms from providing or supporting digital asset depository services.

The announcement, published on the official webpage on Sept. 15, reports that the SEC has opened a public hearing on the matter and will be collecting opinions until Oct. 17.

In principle, the regulator intends to ban any staking and lending services from the “digital asset business operators” to protect traders and the general public from the “risks of such transaction providers.”

The planned ban includes several principal points. It will prohibit operators from taking a deposit of digital assets with a promise to pay returns to depositors —even if the returns come not from the growing value of the assets but the promotion budget. Advertising of lending and depositary services would also be banned.

Crypto lending platforms got themselves in serious trouble this summer amid the general market meltdown, such companies as Celsius Network and Voyager Digital have frozen their withdrawals and then filed for bankruptcy.

Thailand saw its own example in Zipmex — a crypto exchange that suspended withdrawals in July, citing a “combination of circumstances beyond [its] control.” In September, the SEC accused crypto exchange and its co-founder Akalarp Yimwilai of non-compliance with local laws and referred the matter to the police. The regulator claims that Zipmex had not provided information on digital wallets and crypto transactions in compliance with the country’s Digital Assets Act.

The SEC will also implement stringent advertising rules for cryptocurrency firms operating in the country, starting from October. Firms will have to limit advertising directly promoting cryptocurrency to "official channels" like their own websites and will be required to hand over details of adverts and spending, including the use of social media influencers and bloggers and their terms, to the SEC.

Thai SEC files police report on Zipmex, alleging ‘incomplete’ info for compliance procedures

September 7, 2022 Coin Telegraph

Coin Telegraph

The Cyber Crime Investigation Bureau in Thailand will now consider whether to pursue legal action against Zipmex following the SEC's allegations.

Thailand’s Securities and Exchange Commission, or SEC, has accused crypto exchange Zipmex and its co-founder Akalarp Yimwilai of non-compliance with local laws and referred the matter to the police.

In a Wednesday announcement, the Thai SEC alleged Zipmex had not provided information on digital wallets and crypto transactions in compliance with the country’s Digital Assets Act. The regulator claimed that both Akalarp and the exchange forwarded incomplete information outside of an approved timeframe without providing a “reasonable cause” or excuse.

“Such actions by Zipmex and Mr. Akalarp are considered to be non-compliance with the competent official's orders, which is an offense and has a penalty under Section 75 of the Digital Assets Act,” said the regulatory body. “The SEC has accused Zipmex and Mr. Eklarp to the [Cyber Crime Investigation Bureau], to consider further legal action.”

ก.ล.ต. กล่าวโทษ Zipmex และผู้บริหาร ต่อ บช.สอท. กรณีไม่ปฏิบัติตามคำสั่งพนักงานเจ้าหน้าที่ https://t.co/VDTTcmaNsw
— ThaiSEC_News (@ThaiSEC_News) September 7, 2022

Zipmex responded to the SEC’s earlier request for information in a Wednesday blog post, saying it was “in the process of compiling relevant documents that belong to both Zipmex itself and Zipmex Pte. Ltd., an entity which is not under the regulatory jurisdiction of the Thai SEC”:

“Any disclosure of Zipmex Pte. Ltd.’s information must be carried out with the utmost care and consideration to ensure that regulations are fully complied with and standards such as data privacy are duly observed.”

The crypto exchange suspended withdrawals in July, citing a “combination of circumstances beyond [its] control.” At the time, Zipmex co-founder Marcus Lim denied reports the exchange was experiencing financial difficulties. However, the firm later filed for debt relief in Singapore and was granted more than three months of creditor protection following a decision from the country’s High Court. The exchange has until Dec. 2 to present a restructuring plan.

In a Sept. 1 message on its Facebook page, Zipmex said it will be holding an online town hall meeting for both English and Thai speakers on Sept. 14 with its financial and legal advisers. The firm operates crypto exchanges in Thailand, Australia, Indonesia and Singapore.

Cointelegraph reached out to Zipmex, but did not receive a response at the time of publication.

Thai SEC Creates New Crypto Advertising Rules

September 2, 2022 The Crypto Briefing

Thailand SEC to apply strict guidelines for crypto ads

September 2, 2022 Coin Telegraph

Advertising

Cryptocurrency-related adverts in Thailand will have to meet strict rules as the Securities and Exchange Commission looks to emulate foreign standards.

Thailand’s Securities and Exchange Commission (SEC) will implement stringent advertising rules for cryptocurrency firms operating in the country by October 2022.

The Thai SEC informed cryptocurrency-related businesses operating in the country via email that adverts concerning digital currencies must have clear investment warnings to consumers on Sep. 1. The statement was later posted on the SEC website.

The Securities regulator has instituted the new standards for cryptocurrency-related adverts in response to a number of marketing campaigns that have neglected to include investment risk warnings.

The new standards will require adverts to not feature false, misleading or exaggerated claims and include investment risks warnings. The correspondence from the SEC also calls for balanced advertising, which would entail including potential positive and negative factors relating to the products or services being promoted.

Firms will have to limit advertising directly promoting cryptocurrency to ‘official channels’ like their own websites and will be required to hand over details of adverts and spending, including the use of social media influencers and bloggers and their terms, to the SEC.

Prominent cryptocurrency exchanges like Bitkub and Zipmex have adverts on large street billboards and in public transport hubs, promoting their mobile applications and services to prospective users in the country. Advertising of services is still permitted in public spaces according to the SEC’s directive.

Companies have been given a month to comply with the new requirements as the SEC continues to establish frameworks that are positioned to protect retail investors in the country. This would include updating or amending existing adverts across print, online and real-world platforms.

The SEC further noted that the move was in line with regulatory standards set in other countries like the United Kingdom, Singapore and Spain, which had previously instituted stricter guidelines for cryptocurrency-related advertising.

August 2022 was a busy month for the Thai SEC as it granted licenses to four new cryptocurrency-related businesses to operate. The regulator also put Bitkub under the microscope, fining the firm's chief technology officer Samret Wajanasathian for alleged insider trading of its KUB token ahead of a lucrative investment deal with Thailand's Siam Commercial Bank.

Crypto Ads in Thailand Must Feature Clear Investment Warnings, New Regulations Require

September 2, 2022 Bitcoin.com

Thai SEC alleges Bitkub CTO committed insider trading

August 30, 2022 Coin Telegraph

bitkub

“The act of Mr. Wajanasathian is an offense of buying KUB coins by being a person who knows or possesses inside information,” said Thailand's financial regulator.

Thailand’s Securities and Exchange Commission, or SEC, announced enforcement actions against the chief technology officer of crypto exchange Bitkub, who allegedly used insider information around the purchase of Bitkub Coin (KUB).

In a Tuesday announcement, the Thai SEC said it had fined Bitkub chief technology officer Samret Wajanasathian 8,530,383 baht — roughly $234,000 at the time of publication — and intended to bar him from being a director or executive officer at any crypto firm for a year. The financial regulator alleged Wajanasathian purchased roughly $61,000 worth of KUB tokens in advance of an announced deal in which Siam Commercial Bank, or SCB, said it would purchase a 51% stake in the crypto exchange. The news drove the price of KUB up by 101%.

“The act of Mr. Wajanasathian is an offense of buying KUB coins by being a person who knows or possesses inside information,” said the SEC.

ก.ล.ต. ใช้มาตรการลงโทษทางแพ่งกับผู้กระทำความผิด 1 ราย กรณีซื้อเหรียญ KUB โดยอาศัยข้อมูลภายในhttps://t.co/fiupGJKGb9
— ThaiSEC_News (@ThaiSEC_News) August 30, 2022

The Thai SEC said Wajanasathian still has to sign a memorandum of consent before the “period of prohibition from being a director or executive” at a crypto firm could take effect. The chief technology officer’s LinkedIn page showed his position at Bitkub was unchanged at the time of publication, but he did not appear on the company website.

On Thursday, the SCB announced that it had abandoned a $500-million plan to become the majority shareholder of Bitkub due to concerns about the crypto exchange “resolving various issues,” according to recommendations from the SEC. It’s unclear whether the bank was privy to the financial regulator’s impending enforcement actions against Bitkub’s chief technology officer.

Siam Commercial Bank abandons plans to purchase $500M stake in crypto exchange Bitkub

August 25, 2022 Coin Telegraph

Siam Commercial Bank abandons plans to purchase 0M stake in crypto exchange Bitkub

Banks

The bank cited concerns with Bitkub “resolving various issues,” according to recommendations from the country’s Securities and Exchange Commission without a definite timeline.

Thailand’s oldest bank has scrapped plans it first announced in November 2021 to become the majority shareholder of crypto exchange Bitkub.

In a Thursday announcement, Siam Commercial Bank’s SCB X Group said it would no longer be paying 17,850 million Baht — roughly $536 million in November and $497 million at the time of publication — to acquire a 51% stake in the Thailand-based crypto exchange. The bank cited concerns with Bitkub “resolving various issues” according to recommendations from the country’s Securities and Exchange Commission without a definite timeline.

According to the SCB, the company conducted a due diligence exercise on Bitkub following the November 2021 announcement it planned to become a majority shareholder, resulting in “many opportunities for cooperation in various areas in order to develop and improve the business operations” of the crypto exchange. However, its board of directors passed a resolution to terminate the deal on Thursday.

“SCB X Public Company Limited and SCB Securities Co., Ltd. remain committed to their strategic plans to expand into businesses relating to blockchain technology and digital assets, which will play an important role in Thailand's economy and financial industry,” said the bank.

Siam Commercial Bank CEO Arthit Nanthawittaya originally proposed the acquisition based on the growth of businesses in the digital asset space since 2019 and the expected value in the long term. At the time, the company hinted at aiming to strengthen and grow the digital asset ecosystem in Thailand.

In January, Thailand’s SEC and central bank announced regulations and usage limitations on crypto in an effort to stop the asset from being traded on unlicensed platforms. Bitkub is one of the few crypto exchanges in Thailand operating with the approval of the country’s SEC, but the restrictions reportedly caused a delay in the deal between the firm and the SCB.

Zipmex gets 3 month protection in Singapore amid halted withdrawals

August 15, 2022 Coin Telegraph

Coin Telegraph

Troubled crypto exchange Zipmex has time to come up with a restructuring plan by Dec. 2 after halting withdrawals in July.

Cryptocurrency exchange Zipmex has gotten a chance to sort out liquidity issues as a court in Singapore has granted the firm with more than three months of creditor protection.

Singapore’s High Court has ruled to give each of the five Zipmex entities a moratorium until Dec. 2, 2022 to come up with a restructuring plan, Bloomberg reported on Monday.

The action aims to protect Zipmex from potential creditor lawsuits during the moratorium period after the exchange abruptly halted crypto withdrawals on its platform in mid-July. The cryptocurrency has since resumed partial withdrawals from Zipmex’s trade wallet but is yet to resume all withdrawals.

Zipmex sought creditor protection for a period of six months subsequently after halting withdrawals, filing five moratorium applications on July 27. The exchange cited liquidity issues due to exposure to the cryptocurrency lender Babel Finance, which halted withdrawals in June.

The Thailand-based crypto exchange is not the first crypto firm to receive a moratorium in Singapore. Justice Aedit Abdullah also granted a three-month protection from creditors to Vauld, another local crypto firm that halted withdrawals in early July.

According to some reports, Zipmex shareholders and potential investors have urged CEO Marcus Lim to step down over management decisions which they believe have led to the severe cash crunch.

Cryptocurrency lending is a type of crypto service that allows borrowers to use their crypto assets as collateral to get loans in fiat currencies like the U.S. dollar or stablecoins like Tether (USDT). The practice allows users to get money without having to sell their coins and repay the loan at a later date.

The crypto lending industry has faced massive liquidity issues amid a major bear market of 2022 as lenders became unable to provide full liquidity on assets that were lent out at the same time. According to some industry observers, crypto lending is still able to survive the crisis but it needs to get rid of the maturity mismatch problem.

Thailand Plans to Tighten Crypto Oversight, Giving Central Bank More Powers to Regulate Digital Assets

August 10, 2022 Bitcoin.com

The Bank of Thailand to pilot Retail CBDC by the end of 2022

August 5, 2022 Coin Telegraph

CBDC

The Retail CBDC will be tested in a limited retail environment with 10,000 participants and three major banks.

On top of its wholesale central bank digital currency (CBDC) projects and proof-of-concept Retail CBDC testing with corporates, the Bank of Thailand (BOT) will extend the scope of CBDC development aimed at retail to a pilot phase. A possible real-life application of the "Retail CBDC" will be conducted inside the private sector on a limited scale.

As the Aug. 5 announcement on the official page of the BOT goes:

“The BOT will assess the benefits and associated risks from the Pilot to formulate related policies and improve the CBDC design in the future.”

The pilot is separated into two tracks. During the first one — a “Foundation track” — CBDC will be tested in cash-like activities, i.e. paying for goods and services, within limited areas and a scale of 10,000 retail users. There will be three companies to participate in the experiment — the Bank of Ayudhya, Siam Commercial Bank and 2C2P. The testing should start at the end of 2022 and last until mid-2023.

A second phase dubbed the “Innovation track” will focus on presenting innovative use cases for CBDC. The private sector and the public will have a chance to present their use cases for Retail CBDC via a "CBDC Hackathon," which will take place Aug. 5 – Sept. 12, 2022. Selected participants will get mentorship from experienced financial institutions.

In the meantime, the BOT doesn’t plan to issue Retail CBDC, “as the issuance requires thorough consideration” of risks and benefits for the financial system in general.

On Aug. 4, Thailand’s financial regulator, the Securities and Exchange Commission (SEC) granted operating licenses to four digital asset operators, despite turmoil regarding the Singaporean exchange Zipmex, which suspended withdrawals for customers in the country in July. Crypto volumes in Thailand surged almost 600% in early 2021 as the bull market was building momentum.

thailand