Thailand's SEC to oblige DeFi token issuers to obtain a license from the regulator – Bits Media

Thai government will make another attempt to regulate the cryptocurrency industry. This time, Thailand's SEC drew attention to decentralized finance projects (DeFi).

Thailand securities commission and exchanges (SEC) stated, that any The activity associated with Defi may require a license from a financial regulator in the near future. SEC noted, that the new rules will be primarily aimed at Defi protocols, which produce tokens.

Another regulatory initiative, Apparently, associated with the release of the Defi Tuktuk Finance protocol of its own token on the smart contract platform, controlled by the popular Thai cryptocurrency exchange BitKub. The price of token flew to "several hundred dollars", and then collapsed to $1 in just a few minutes.

According to the official website of the platform, The total cost of crypto acts blocked in the protocol was $18 million, At the same time, Tuk Tuk was traded for $1.93, which gives the project market capitalization in $7.1 million. The statement of Thai SEC was the first case, when the regulator aimed at Defi.

“The release of digital tokens should be authorized and controlled by the Securities and Exchange Commission, And the issuer must disclose information and offer coins through tokens portals, licensed in accordance with the decree on digital assets ", - says the agency’s statement.

CEO of the investment application AVA ADVISOR NIRAN RUSSIAN (Niran pravithana) said, that it is quite reasonable, since many fraudulent tokens are produced, and criminals can work through messages to exchange, eg, Telegram, and manipulate tokens prices.

In early May it became known, that the management of money laundering Thailand (AMLO) will oblige users of cryptocurrency exchanges to go through KYC procedures. Recall also, that in April KBANK and the Thailand stock exchange began to study the possibilities of Defi for lending.