Thailand's SEC Bans Crypto Firms From Offering Staking and Lending Service

The regulator recently filed a police report against Zipmex after the exchange froze withdrawals in July.

AccessTimeIconSep 15, 2022 at 8:18 a.m. UTC
Updated May 11, 2023 at 4:21 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Thailand's Securities and Exchange Commission (SEC) has banned crypto companies from offering staking and lending services, according to a press release on Thursday.

The decision to ban "depository services," which includes paying returns to depositors, was made to protect traders from the risks associated with crypto lenders, the release said.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Why Core Scientific is Focused on 2028
    00:57
    Why Core Scientific is Focused on 2028
  • Bitcoin, Ether Rise Amid ETF Steam in Hong Kong; Solana's Latest Update
    02:14
    Bitcoin, Ether Rise Amid ETF Steam in Hong Kong; Solana's Latest Update
  • Bitcoin Whales Yet to Resume Accumulation: IntoTheBlock
    01:06
    Bitcoin Whales Yet to Resume Accumulation: IntoTheBlock
  • Several crypto lenders including Celsius Network and Babel Finance, as well as exchanges offering lending services, froze withdrawals over the past few months following a downturn in the crypto market, with bitcoin and ether losing over 50% of their value since the turn of the year.

    One of the troubled exchanges that halted withdrawals is Zipmex, which has entities in Singapore, Thailand, Australia and Indonesia.

    The Thai SEC filed a police complaint against Zipmex last week after the exchange failed to provide transactional information before a deadline. The regulator also asked Zipmex to provide clarity on the withdrawal freeze in July.

    Zipmex did not immediately respond to CoinDesk's request for comment.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Oliver Knight

    Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about