Thai regulators plan to regulate the decentralised finance space after a ‘pump and dump’ last weekend
The Thailand Securities and Exchange Commission is looking to regulate the decentralised finance space following a surge in activities in the country. The SEC has turned its attention to the DeFi sector following the launch of the DeFi farming platform Tuktuk Finance. Tuktuk launched on Bitkub Chain last weekend.
According to the Bangkok Post, Tuktuk Finance launched during the weekend, with its price surging to hundreds of dollars before dumping to $1. The project was a clear ‘pump and dump’, with investors losing millions of dollars in the process. The project got the regulator’s attention, and it now wants to step into the sector.
While the Thai SEC wants to regulate the DeFi space, it is unclear which regulatory agency would handle the task. “It is the first official announcement on DeFi from the SEC. Earlier, it was not clear which regulators would have oversight over DeFi transactions in the country,” the Bangkok Post added.
Regulators from various parts of the world are yet to determine how to regulate the DeFi sector properly. It is tough to regulate a completely decentralised sector. DeFi platforms are becoming popular, providing some of the services offered by traditional financial institutions, such as borrowing and lending. However, with DeFi, there are no intermediaries in the transactions.
The SEC said there needs to be proper guidance for issuing DeFi tokens. “The issuance of digital tokens must be authorized and overseen by the Securities and Exchange Commission, and the issuer is required to disclose information and offer the coins through the token portals licensed under the Digital Asset Decree,” the regulator added.
Regulators globally are paying more attention to the cryptocurrency market as it has grown to become a $2 trillion industry over the past year.