The latest reports suggest that the securities regulator from Thailand is making the necessary preparations from its end to hold public hearings.
According to the reports, the particular regulator is the Securities and Exchange Commission (SEC) of Thailand. It wants to know the public opinion about lending and staking services in the cryptocurrency industry.
Potential Ban on Lending and Staking
The number of lending and staking services has been rising in Thailand for a while.
The Thai regulators seem to have grown about the expansion of these services in the country. They want to know exactly what is causing the expansion of these services at such a fast rate.
There is a possibility that the regulatory authorities in Thailand may be planning to implement strict bans on lending and staking services.
However, they have decided to do things the right way, instead of going all-out aggressively against the industry.
They want to hear what the public has to say about the adoption of lending and staking services. They want to review their explanations and comments to understand what is causing the numbers to increase.
Based on their findings and assessments of the collected data, they may decide if it would be a good idea to ban these services.
Official Announcement by the Regulator
On March 8, the officials at the Thai SEC made an official announcement where they addressed the public. They requested the locals in Thailand to share their reviews and comments about the crypto-related services.
To be precise, Thai regulators have been working on the implementation of new regulations for the cryptocurrency and blockchain industry in the country.
However, the credit goes to the Thai regulators that are giving people the chance to share their views about the mentioned services.
The new regulation that the regulators are readying simply bans crypto staking and lending services. However, they do not want to impose them without asking the public what their opinions are.
If the public comments are not convincing enough or the authorities decide to impose the bans, then the situation will become dire for VASPs (virtual asset service providers).
They will be stopped by the new regulations from providing lending and staking transactions/services to the locals. This would take a huge toll on the entire crypto-blockchain industry based in Thailand.
The country is among the luckiest that adopted the crypto and blockchain technologies when they had been introduced. The crypto firms that entered and were launched in the country gained huge recognition.
Their growth was phenomenal and their expansion was recognized throughout the country. The people in Thailand are fond of cryptocurrencies and they have clung to every opportunity that the crypto industry had to offer.
This is the reason why lending and staking services have gained too much traction and usability in the country.
Although these are huge opportunities for investors to increase their gains, they also pose very high risks. The people in Thailand can lose so much money to such platforms and services if they keep interacting with them.
The country is afraid that such platforms may put a negative impact on their economy. This is why it is planning to implement stricter regulations to handle the situation.
Implementation of the Regulations
According to the new regulations, the VASPs will not be permitted and would simply be banned from having the Thai locals make deposits into their platforms.
It would stop them from passing all the damages to the investors in case the services of the platforms are terminated or ended by force.
If the platform ends up getting shut down by the regulators or the authorities, the investments of the investors would not be harmed.
If the public comments do make sense, then the regulators may implement changes to the regulatory framework. They may permit the crypto lending and staking firms to operate but with regulations favoring the investors.