The Thai Securities and Exchange Commission (SEC) once again reminded the citizens of the country about the risks of investing in digital currencies.
Only this time, the regulator urged investors to be as careful as possible when they decide to channel funds into projects deployed in the DeFi decentralized finance market.
According to the SEC, the biggest threat comes from crypto-lending platforms, which have recently become often faced with a shortage of financial reserves. That is why many of them were forced to stop the withdrawal of funds for an indefinite period.
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A big blow to the industry was caused by the collapse of the Terra ecosystem in early May. This event triggered volatility and further the collapse of the digital currency market.
The SEC statement notes: "Investors are advised to research each DeFi project in detail before joining, as deposit-taking and lending services are not regulated by Thai regulators."