Thailand targets DeFi in its latest regulatory crackdown as a new Defi yield farming platform in the country spooked the regulators so let’s find out more in our latest cryptocurrency news today.
According to a June 1 report from the Bangkok Post, Thailand’s Securities and Exchange Commission announced that any activities that are related to Defi could require a license from the financial regulator in the near future and the SEC stated that it will target DeFi protocols that will issue the tokens. The latest regulatory crackdown came after the launch of the native token for the Thai Defi protocol TukTuk Finance on the smart contract platform that is operated by Bitkub. The report outlined that the prices surged to a hundred dollars before collapsing to $1 in a few minutes and according to the platform’s official website, the protocol attracted a total value locked of $18 million with the token trading at $1.93 to give the project a market cap of $7.1 million. This is the first time that the SEC targeted DEFI with the regulatory stating:
“The issuance of digital tokens must be authorised and overseen by the Securities and Exchange Commission and the issuer is required to disclose information and offer the coins through the token portals licensed under the Digital Asset Decree.”
The CEO of AVA Advisor who is an advisor app, Niran Pravithana commented that the latest announcement is reasonable because there are plenty of fraudulent tokens as well as criminals that can hide in messenger applications like Telegram and manipulate the token prices. The centralized banks are among those that embraced Defi in Thailand with the Siam Commercial Bank creating a $50 million investment fund and the KBank experimenting with other Defi services as a part of their expansion plan in April.
The crypto adoption in Thailand was booming with an increase of 600% while Defi grew in popularity with Defiant recently reporting that the country is second in the world by search traffic for the word “decentralized finance” in 2020. that’s why Thailand targets DeFi now as the regulators unveiled new plans to curb the new exchange account creation with the stringent KYC requirements starting in July which measures that will prevent foreign investors from gaining access to Thai exchanges as they are unable to secure local ID Cards.