1 June, 2021
Activities related to decentralized finance (DeFi) projects which involve digital coin issuance may require a licence from the regulator in the near future, the Securities and Exchange Commission (SEC) announced, according to Bangkok Post.
The statement was released on Sunday afternoon after a DeFi farming platform named Tuktuk Finance debuted on Bitkub Chain in the morning. The price of TUK token, the native token of Tuktuk Finance, soared to several hundred US dollars and then collapsed to $1 within just a few minutes.
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.
DeFi has been a challenge for regulators around the world as there are many emerging financial technologies related to DeFi such as popular blockchain-based decentralised financial services, both lending and borrowing, which use smart contracts instead of traditional financial intermediaries, decentralised securities exchanges, asset management, as well as the issuance of digital tokens.
“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,” the SEC said.
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