The Securities and Exchange Commission of Thailand (SEC) has tightened the regulation of the DeFi sector, local publication Bangkok Post has reported.
According to it, all activity related to decentralized finance, especially projects issuing tokens, could require a license issued by the regulator in the near future.
Notably, the announcement by the country's financial watchdog comes shortly after the native token of the Thai DeFi project Tuktuk Finance saw some abrupt price movements, soaring as high as several hundred dollars and then plunging as low as $1.
Following this incident, the SEC has decided to take action. It has declared:
"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."
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The popularity of both cryptos and decentralized finance has increased significantly in Thailand, notably by 600% since November, so it is not surprising the country's regulators want to regulate the sector in order to protect investors.