Thailand, Singapore, and South Korea publish cryptocurrency regulations

Thailand, Singapore, and South Korea publish cryptocurrency regulations

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Author: James Soplin
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Thailand, Singapore, and South Korea publish cryptocurrency regulations
Regulators in Thailand, Singapore, and South Korea simultaneously released rules for cryptocurrency trading
Regulators in three Asian states have released a set of rules to protect investors and users of cryptocurrency exchanges

Three Asian states published guidelines on cryptocurrency trading in early July.

The SEC of Thailand issued guidance on trading with warnings about the need for disclosure. Any digital asset service providers must now publish user-understandable warnings indicating the risks associated with cryptocurrency trading. Users will have to necessarily agree to the risk statement.

To further protect investors, cryptocurrency exchanges are now prohibited from investing, lending, and paying depositors using digital assets from customer deposits.

The Monetary Authority of Singapore (MAS) plans to implement similar measures for user funds. It will require Bitcoin exchanges serving users in Singapore to transfer customer digital assets to trusts. The regulator will also require platforms to curtail lending and staking operations for retail investors, while institutional and accredited investors will retain access to these services.

At the same time, South Korea passed a cryptocurrency bill to protect users. This is expected to be the first step in creating a legal framework for digital assets in the state. Any companies dealing with digital assets must segregate user assets, have insurance, keep reserves in cold wallets, and keep records of user transactions. The Bank of Korea would have the right to request data on any transactions that take place.

The new investor protection rules were introduced in response to the aftermath of a string of bankruptcies of major crypto players in 2022, triggered in part by the collapse of the Terra ecosystem, which saw investors around the world lose at least $40 billion. South Korean authorities are seeking the extradition from Montenegro of Do Kwon, founder of Terraform Labs behind the project, accusing him of cryptocurrency fraud. Kwon could receive a record sentence of more than four decades in prison for the country's financial fraud case.

 

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