By implementing this proactive measure, individuals are provided with comprehensive information before engaging in cryptocurrency transactions.
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Clients are required to undergo careful assessment of investment suitability, carefully consider appropriate investment ratios, and provide their consent with full recognition of the potential risks involved.
This important measure ensures that individuals are well informed and prepared before entering the world of cryptocurrency.
SEC-approved promotional activities required for crypto deposit returns
After extensive discussions during the crucial meetings held in September and December 2022, an important decision was reached to endorse these rules.
The rules were officially approved in May 2023, marking a milestone in their implementation. Discussions regarding rules prohibiting digital asset business operators from providing services or facilitating deposit-taking and lending services took place during the meetings held from December 1, 2022, to May 11, 2023.
Starting August 30, deposits of digital assets will only be eligible for returns if they were part of pre-approved promotional activities specified by the Securities and Exchange Commission.
In addition, the regulations strictly prohibit any attempts to promote or advertise deposit-taking and lending services to the general public, even if they are offered by entities other than digital asset business operators.
During the bear market, a large number of cryptocurrency lending companies, which had accumulated billions in customer deposits by offering high returns, faced financial collapse. Prominent lending companies such as Celsius and BlockFi filed for bankruptcy, entangling investors’ funds in bankruptcy proceedings.
Both investors and individuals are strongly advised to exercise due diligence and to carefully examine the newly introduced framework by the Securities and Exchange Commission.
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By gaining a thorough understanding of the risks involved and adhering to regulatory guidelines, investors can make informed decisions and protect their interests with confidence.
Thailand has taken a wise step towards strengthening investor protection, joining the global effort to effectively regulate the expanding cryptocurrency market.
Featured image from UnSplash, chart from TradingView.com