Thailand's Securities and Exchange Commission (SEC) has banned crypto companies from offering staking and lending services to protect traders from the risks associated with crypto lenders.
(2/5) The decision to ban "depository services", was created to shield traders from the dangers connected with crypto lenders, which include paying returns to depositors.
(3/5) Following a dip in the cryptocurrency market, where bitcoin and Ethereum have lost over 50% of their value since the beginning of the year, several crypto lenders, including Celsius Network and Babel Finance, have frozen withdrawals during the previous few months.
(4/5) Another struggling firm, Zipmex exchange, is among many that have also stopped accepting withdrawals.
The Thai SEC filed a police complaint after Zipmex missed the deadline to deliver transactional information and was questioned regarding the withdrawal freeze in July.
(5/5) It’s understandable why Thailand has taken such a stance to protect its citizen, however, is this the best course of action? Let us know what you think in the comments!
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