The Thai Securities and Exchange Commission has recently intimated the entire decentralized finance (DeFi) community in the country to remain cautious when processing such transactions.
The Thai SEC has advised the DeFi users in Thailand to remain cautious when interacting with the DeFi environment, deeming it very risky.
Thai SEC Cautions DeFi Users
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According to the Securities and Exchange Commission of Thailand, the cryptocurrency sector is full of risks and its DeFi segment is even riskier.
Based on the risky nature of the DeFi space, the Thai regulatory authority has cautioned the investors interacting with the segment to remain cautious and vigilant.
Regulators have no Control
In the intimation notice, the regulatory authority has made it clear to the users they have no control or authority over the particular space.
The Thai SEC even advised the DeFi users that none of the regulatory authorities in Thailand have any control over the DeFi space.
Therefore, it is not possible for them to take any kind of action against any platforms or exchanges if the users end up falling prey to the bad actors.
In case the customers suffer from any kind of loss, then none of the regulatory authorities will have any kind of responsibility or accountability posed over their shoulders.
DeFi is Popular but it is not Full-Proof
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It was on a weekend when the regulatory authority of Thailand made a statement addressing the DeFi users in the country.
The watchdog admitted that in recent years, the cryptocurrency, as well as the DeFi space, has gained tremendous worldwide popularity.
Even in Thailand, the cryptocurrency and its DeFi segment have gained a lot of growth and success. Despite the popularity, the services and benefits offered through the DeFi space are full of risks and uncertainties.
Even the mechanisms used for running operations of the DeFi space are full of uncertainties and complexities that are too difficult to comprehend for commoners.
Therefore, there is a high possibility that people may not be able to gain full knowledge and understanding of the DeFi space.
As for the smart contracts, the control operations within the DeFi space are not streamlined enough to offer stability or safety to the users.
Advice by Thai SEC
In light of the risks and uncertainties within the DeFi space, the Thai SEC has asked investors to be very cautious and alert.
The Thai regulator has asked investors to fully go through and understand the program within the DeFi space before joining.
The regulator also reminded the users that the lending services offered through the DeFi space are not regulated. Therefore, making deposits into a particular space is of high risk.