According to a report by Bangkok on June 1, The Securities and Exchange Commission, Thailand, has turned its eyes on DeFi protocols especially those issuing tokens. This came after a new DeFi yield farming platform in Thailand called Tuktuk Finance that runs on a smart contract platform operated by Bitkub, a Thailand based crypto exchange, launched its native token on Sunday.
According to reports, the value of the said TUK token skyrocketed to several hundred dollars before crashing down to around $1 within a few minutes of its launch.
This is the first time Thailand’s SEC is targeting DeFi Protocols though it comes amid a widespread cry among global players after a spree of hacks and exit strategies by several DeFi protocols.
According to Thailand’s SEC, “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.”
Crypto adoption in Thailand has been booming with DeFi leading the way in popularity among users in the country. The Defiant recently reported that Thailand ranked second in terms of the search keyword “decentralized finance” last year.
Besides, individuals, traditional centralized banks in Thailand have also embraced decentralized finance. For instance, in February, Siam Commercial Bank announced a $50 million investment fund.