In their latest attempt to regulate the cryptocurrency industry, Thailand’s financial regulators have shifted their focus towards decentralized finance, or DFI.
As of June 1 Report good From Bangkok Post, The Securities and Exchange Commission (SEC) of Thailand has announced that any activity related to DeFi may require a license from the financial regulator in the near future. The SEC specifically stated that it will target DeFi protocols that issue tokens.
The latest regulatory push comes after the launch of the native token for the Thai DeFi protocol, TukTuk Finance, on Sunday, a smart contract platform operated by popular local crypto exchange Bitcube.
The report said that the price reached “several hundred dollars” before dropping to $1 within a few minutes. According to the platform’s official website, the protocol has attracted a total value lock of $ 18 million, or TVL, with TUK tokens final trading at $ 1.93 to give the project a market cap of $ 7.1 million.
This is the first time that the SEC has specifically targeted DeFi, with the regulator stating:
“Issuing digital tokens must be authorized and supervised by the Securities and Exchange Commission and require the issuer to disclose information and offer coins through a token portal licensed under the Digital Asset Decree.”
Niran Praveena, CEO of Ava Advisor, an investment robo-advisory app, commented that the announcement is justified as there have been many fraudulent token issuances and criminals can hide in messenger applications like Telegram and manipulate token prices.
Centralized banks are among those that have adopted DeFi with Siam Commercial Bank in Thailand Announcement of $50 million investment fund in February, And Kbank experimenting with DeFi services As part of its business expansion plan in April.
As reported by Cointelegraph in April, Crypto adoption is growing rapidly in Thailand With an increase of about 600% since November. Defy’s popularity has also increased, with The Defiant recently reporting that the country has been ranked second worldwide by search traffic for the keyword “decentralized finance” in the past year.
Regulators in the state responded in May, unveiling plans to stop new crypto exchange account creation. Strict in-person KYC requirements Starting in July. This measure will also prevent foreign investors from accessing Thai exchanges as they are unable to secure local ID cards.