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Thai SEC Implements Measures to Protect Crypto InvestorsIn response to the crypto lending crisis that unfolded in 2022, prompting companies like BlockFi and Celsius to declare bankruptcy, Thailand’s Securities and Exchange Commission (SEC) has introduced new regulations aimed at safeguarding investors in the digital assets space.Photo by Jakob Owens on UnsplashDisclosing risk warningsThe guidelines, issued on Monday, require digital asset service providers to provide comprehensive warnings that emphasize the risks associated with cryptocurrency trading. All platforms must prominently display a message stating: “Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose the entire investment amount.” Prior to utilizing the service, users must consent to and acknowledge the risks.Crypto lending prohibitionIn addition to the risk disclaimer, the new guidelines explicitly forbid service providers from using customer funds for lending or investment purposes. This ban on crypto lending services prevents platforms from offering any returns on deposited crypto to customers. By implementing these measures, the Thai SEC aims to enhance investor protection and shield investors from the risks posed by lending services. The regulations are scheduled to take effect at the end of the month.Today’s guidelines are the product of months of deliberation. Discussions surrounding investor protection regulations commenced on September 1, 2022, when the SEC acknowledged the necessity for security warnings by cryptocurrency businesses to disclose the risks associated with trading digital assets. The prohibition on digital asset operators offering deposit-taking and lending services was deliberated during meetings held on December 1, 2022, and May 11, 2023.Response to crypto platform failuresThe introduction of these investor protection rules follows a significant crisis in the crypto lending sector that unfolded during the bear market of 2022. Several crypto lending firms, which had collected billions of dollars in customer deposits by promising substantial returns, collapsed during this period. Prominent lending companies such as Celsius and BlockFi filed for bankruptcy, resulting in investors’ funds being trapped in lengthy bankruptcy proceedings.The Thai SEC’s proactive approach in implementing these regulations reflects the growing concern for investor welfare within the cryptocurrency industry. By requiring clearer risk disclosures and prohibiting the use of customer assets for lending and investment, the SEC aims to instill greater confidence and transparency in the digital asset service sector.Crypto academyThailand’s SEC has run other initiatives in efforts to better protect investors. In January the Commission launched the SEC Crypto Academy, an e-learning course. The objective of that initiative was to provide investors with a basic understanding of the digital assets space prior to investing. At the time of the launch of the course, the SEC said that “the more you know your investments, the less risk you will have.”These latest regulations not only serve as a protective measure for Thai investors but also set an example for other jurisdictions to evaluate and enhance their own regulatory frameworks. As the crypto industry continues to evolve, prioritizing investor protection becomes crucial in fostering a more sustainable and responsible ecosystem.

BS Universe to Leverage Burrito Wallet’s Multichain Capabilities for Global IP ProjectBS Universe, the Singapore-based company behind the globally popular intellectual properties (IPs) Pinkfong and Baby Shark, said Friday that it has signed a memorandum of understanding (MOU) with Burrito Wallet — the digital wallet developed by Rotonda, a subsidiary of Korean crypto exchange Bithumb. Through this new partnership, BS Universe aims to make the user experience on its open-world ecosystem, Baby Shark Universe, more convenient by utilizing the multichain blockchain support capabilities of Burrito Wallet.Photo by Shubham Dhage on UnsplashThis is part of the company’s goal to introduce a new paradigm by merging global IPs with innovative technologies.Multichain tech meets Web3 ecosystemBurrito Wallet is a Web3.0 digital wallet that supports 11 mainnets including Bitcoin, Ethereum, and Polygon, along with over 1,300 cryptocurrencies. It also incorporates an easy sign-up and wallet formation system while enabling users to send NFTs and virtual assets through chatting without the hassle of wallet addresses, thereby reducing the risk of faulty deposits.BS Universe’s Baby Shark Universe project is a joint venture between Baby Shark Games, a subsidiary of The Pinkfong Company’s gaming division, and Retro Future, a pixel game developer. This project aims to create a Web3-based open-world ecosystem. The company also joined the Polygon ecosystem in April and is consistently updating its products and services.Sneak peek of Baby Shark UniverseBS Universe plans to reveal the pre-alpha version of Baby Shark Universe at Next Block 2023 — a conference co-hosted by Rotonda and Bithumb META, Bithumb’s metaverse subsidiary, for accelerating joint Web3 projects — on September 4. Through efforts like this, the company intends to increase interactions with users.

Korea’s Intragovernment Group Launched to Thwart Crypto-Related CrimesThe South Korean government has taken a significant step today in combating cryptocurrency crimes with the launch of a dedicated intragovernmental division. The newly established joint crypto-crime investigation division operates under the Seoul Southern District Prosecutors’ Office and comprises 30 skilled investigators from seven different government agencies.Photo by Daniel Bernard on UnsplashMulti-agency collaborationThese agencies are the Public Prosecutors’ Office, the Financial Supervisory Service (FSS), the Korea Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC), the National Tax Service (NTS), the Korea Customs Service (KCS), Korea Deposit Insurance Corporation (KDIC), and Korea Exchange (KRX).The growth of the domestic crypto market in South Korea has been remarkable since the advent of cryptocurrency exchanges in 2014, attracting approximately 6.27 million individuals and reaching a valuation of 19 trillion KRW ($14.9 billion). Daily average trading volumes have surged to three trillion KRW, involving participants from various age groups, with individuals in their 30s and 40s constituting the largest share.Regulatory absenceHowever, the absence of adequate regulations has exposed customers to unfair practices in virtual asset trading. Although the recent passage of the Virtual Asset User Protection Bill at the National Assembly is encouraging, implementing comprehensive policies to safeguard crypto investors will take a significant amount of time.The risks associated with virtual asset investments are highlighted by the frequent delisting of cryptocurrencies from the nation’s top five exchanges. In the past two years, 1,053 cryptos have been delisted, and an additional 1,010 have been flagged as risky. The prevalence of unstable cryptocurrencies has resulted in high price volatility, incurring losses for investors. This volatile environment has also given rise to various crypto-related crimes, including unlawful listings, market manipulation, illegal foreign exchange trading, and pyramid schemes.Two teamsTo address these challenges, the joint crypto-crime investigation division is structured with two teams. The research and analysis team will study virtual asset issuers and distributors, identifying suspicious transactions. Virtual assets found to be fraudulent will be reported to the investigation team, which will then conduct thorough investigations and pursue legal action against problematic projects, while also recommending regulatory enhancements. Profits obtained through illegal means will be confiscated by the Seoul Southern District Prosecutors’ Office.The division’s main focus lies on virtual assets that have been rapidly delisted, those marked as risky, and those exhibiting significant price volatility. Committed to upholding fairness and transparency in the crypto industry, the joint crypto-crime investigation division will strive to protect market participants and make valuable contributions to the Korean economy.