Thailand to target DeFi in latest regulatory clampdown

In their latest effort to regulate the cryptocurrency industry, Thailand’s financial regulators have turned their sights towards decentralized finance, or DeFi.

According to a June 1 report from Bangkok Post,Thailand’s Securities and Exchange Commission (SEC) has announced that any activities related to DeFi may require a license from the financial regulator in the near future. The SEC specifically stated it will target DeFi protocols that issue tokens.

The latest regulatory push comes after the launch of the native token for Thai DeFi protocol, Tuktuk Finance, on the smart contract platform operated by popular local crypto exchange Bitkub on Sunday.

The report noted that prices had skyrocketed to “several hundred dollars” before collapsing to $1 within just a few minutes. According to the platform’s official website, the protocol has attracted a total value locked, or TVL, of $18 million, with the TUK token last trading at $1.93 to give the project a market cap of $7.1 million.

It is the first time that the SEC has specifically targeted DeFi, with the regulator stating:

“The issuance of digital tokens must be authorised 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.”