In a renewed push to regulate the crypto market in Thailand, the country’s securities and exchange commission has said that all the crypto offerings in the local market, including the DeFi space, must get government approval.
In a statement issued on Sunday, the Thai SEC warned all the innovators gearing up to launch their decentralized products to check whether their offerings included crypto tokens. It added that under the new crypto laws, the company’s failure to comply with the regulations could face legal challenges from the government.
The recent statement came after a decentralized farming platform was launched on the Bitkub chain. Soon after the launch, the platform’s local token surged to hundreds of dollars, only to plunge to $1 a few hours later.
The latest warning from the SEC is the first move from the Thai government that addressed the decentralized space, which does not need intermediaries to make financial transactions on smart chains on decentralized blockchains.
Besides that, it asked the traders to first study the decentralized space ahead of getting involved in its technicalities. Plus, all the crypto-related businesses in the country, including brokerage firms, asset management, and trading platforms, must get their licenses under 2018’s crypto act.