Thai SEC gives green signal to Crypto firms despite Huobi, Zipmex fallout

Sahana Kiran
crypto
Source – Unsplash

The dramatic downfall of Terra added to the dominance of the bears. Amidst all of this, regulators were seen trying their best to safeguard the public. While some were formulating regulations governing stablecoins, a few others were limiting their retail users. Regulators in Thailand, however, were on an approval spree.

The Securities and Exchange Commission [SEC] of Thailand gave a green signal to four crypto companies. With this, these firms would be allowed to operate legally in the region. This list included crypto broker Krungthai XSpring, advisor and fund manager Coindee, fund manager Leif Capital Asset Management, as well as crypto exchange T-BOX [Thailand].

It should however be noted that the aforementioned firms were yet to kick start their operations. The SEC will reportedly investigate the operating system of these firms before they officially start functioning.

Thailand has had a love-hate relationship with crypto. More recently, the Thai SEC issued a ban on crypto. This was however limited to the assets being used as a means of payment. Trading of digital assets was still legal in the region.

Therefore, trading platforms in Thailand seemed to be getting a boost. At present, the country harbors 21 regulated crypto firms. This list ranges from nine exchanges, three fund managers along with nine brokers.

Thailand regulators remain unfazed by the Zipmex fiasco

In addition to the failure of other lending platforms, the SEC seemed to be untethered by Zipmex’s latest move. Back in July, Zipmex Thailand pulled the plug on withdrawals in the region. Following this, the SEC intervened and rolled out a hotline for Zipmex’s customers. This soon loomed into an investigation. Pointing out the violation of trading laws, the SEC urged the platform to resume withdrawals. This was however limited to Solana [SOL] and XRP. Withdrawals for assets like Bitcoin [BTC] and Ethereum [ETH] were not permitted.

In addition to this, the Thai government had previously ousted Huobi after revoking its license.

The Thai SEC seems to have had many such fallouts. In addition, it appeared that the regulator’s decision to grant further licenses was unaffected by the failure of a number of crypto endeavors.