After FTX's collapse, yet another country is looking to tighten its crypto regulations.
The Thai Securities and Exchange Commission (SEC), the capital market supervisory agency in Thailand, is reportedly looking to strengthen its crypto regulations.
According to the news report shared by the Bangkok Post, the Thai SEC plans to tighten regulations "to mirror the global market" and "increase investor protection."
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More specifically, the Thai SEC is looking to work on regulations "protecting investors' assets, governing advertisements and product promotions, preventing conflicts of interest, and strengthening cybersecurity."
In the news report, the SEC's Fintech Department claimed that the decision to strengthen the country's crypto regulation came as, in the past year, several crypto firms announced their bankruptcy.
More particularly, SEC names the fall of Terraform Labs’ LUNA and UST, Three Arrows Capital, Thai-based Zipmex and, of course, crypto exchange FTX.
On top of that, the representative of SEC's Fintech Department claims that crypto advertisements are also an issue that regulators must consider. According to the SEC’s spokesperson, crypto advertising started containing information which potentially "mislead investors and increase their investment risks."
It is reported that the Thai SEC has gathered a committee working on improving and changing existing crypto regulations to make them suitable for changing environments and new risks.
In the report, an SEC representative revealed that SEC will be suggesting the use of distributed ledger technology (DLT) in the business sector.
It is not the first time the Thai SEC is imposing drastic rules to control the crypto sector. In the middle of September, Thailand’s Securities and Exchange Commission (SEC) banned crypto companies from providing staking and lending services.
At that time, the SEC claimed that the decision to halt “depository services” was made to protect investors from risks related to crypto lenders.
