Thailand’s Securities and Exchange Commission (SEC) has issued a warning to domestic investors about the hazards that DeFi transactions represent. According to the SEC, the DeFi ecosystem, particularly lending and debit-taking firms, may lack appropriate limitations in their systems to prevent rug-pull and overleveraged collateral.
According to the SEC’s Wednesday statements, the DeFi transactions are dangerous, as these organizations may lack systems that assure system efficiency by imposing terms and conditions in smart contracts. Officials also stated:
“Therefore investors are advised to study any DeFi programme before joining… as deposit taking and lending services are not regulated by the financial and capital market regulators in Thailand.”
Financial decisions are determined by the application process over meeting the precise requirements and circumstances in Decentralized Finance (DeFi). As a result, it lacks any third-party counter to monitor the system. SEC added:
“However, any DeFi transaction carries a number of risks, including the risks from the products and services which can be complicated”
Citing the dangers inherent in DeFi initiatives, SEC representatives said that lending cryptocurrencies may surpass collaterals and result in the borrower not receiving their cash back or the projected return on investment (ROI).
As per the SEC’s findings, the technical and security risks in DeFi projects make them more vulnerable.
“Therefore, investors are advised to study any DeFi programme before joining the programme and should be exercised carefully in transactions as deposit taking and lending services are not regulated by the financial and capital market regulators in Thailand.”
Notably, the Thai commission began warning investors after the two DeFi platforms recently suspended withdrawals. Zipmex, a digital asset brokerage, said on July 21 that it would halt withdrawal from its subsidiaries in Thailand and Singapore.
Chainalysis, a blockchain research organization, has released a report on criminal activity in the cryptocurrency business. According to the research, the DeFi ecosystem accounted for 97% of all stolen digital assets up to May 2022, totaling $1.7 billion.
Given the increased concerns, the SEC also stated that they are evaluating the regulatory requirements for cryptocurrencies. The current regulatory environment does not permit centralized or decentralized lending of cryptocurrency and deposits. To safeguard investors to the best of their abilities, officials work with the competent authority to develop comprehensive regulations that ensure user safety.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Author
News
Thai SEC Warns Investors About DeFi Trading
Thailand’s Securities and Exchange Commission (SEC) has issued a warning to domestic investors about the hazards that DeFi transactions represent. According to the SEC, the DeFi ecosystem, particularly lending and debit-taking firms, may lack appropriate limitations in their systems to prevent rug-pull and overleveraged collateral.
According to the SEC’s Wednesday statements, the DeFi transactions are dangerous, as these organizations may lack systems that assure system efficiency by imposing terms and conditions in smart contracts. Officials also stated:
“Therefore investors are advised to study any DeFi programme before joining… as deposit taking and lending services are not regulated by the financial and capital market regulators in Thailand.”
Financial decisions are determined by the application process over meeting the precise requirements and circumstances in Decentralized Finance (DeFi). As a result, it lacks any third-party counter to monitor the system. SEC added:
“However, any DeFi transaction carries a number of risks, including the risks from the products and services which can be complicated”
Citing the dangers inherent in DeFi initiatives, SEC representatives said that lending cryptocurrencies may surpass collaterals and result in the borrower not receiving their cash back or the projected return on investment (ROI).
As per the SEC’s findings, the technical and security risks in DeFi projects make them more vulnerable.
“Therefore, investors are advised to study any DeFi programme before joining the programme and should be exercised carefully in transactions as deposit taking and lending services are not regulated by the financial and capital market regulators in Thailand.”
Notably, the Thai commission began warning investors after the two DeFi platforms recently suspended withdrawals. Zipmex, a digital asset brokerage, said on July 21 that it would halt withdrawal from its subsidiaries in Thailand and Singapore.
Chainalysis, a blockchain research organization, has released a report on criminal activity in the cryptocurrency business. According to the research, the DeFi ecosystem accounted for 97% of all stolen digital assets up to May 2022, totaling $1.7 billion.
Given the increased concerns, the SEC also stated that they are evaluating the regulatory requirements for cryptocurrencies. The current regulatory environment does not permit centralized or decentralized lending of cryptocurrency and deposits. To safeguard investors to the best of their abilities, officials work with the competent authority to develop comprehensive regulations that ensure user safety.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Other Posts
Related Posts
Latest
Bonk’s ICO Was Just the Start: Why BTFD Coin’s Stage 7 Price Rollback Is Your Second Shot at Crypto Glory
Decoding BDAG’s AMA: A Blueprint for Scalable Blockchain and Enhanced Community Ties
Best Cryptos with 1000X Potential: Qubetics Revolutionises Blockchain as Polkadot and Cosmos Shape the Future
Press Release
Bonk’s ICO Was Just the Start: Why BTFD Coin’s Stage 7 Price Rollback Is Your Second Shot at Crypto Glory
Decoding BDAG’s AMA: A Blueprint for Scalable Blockchain and Enhanced Community Ties
