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The Securities and Exchange Commission of Thailand (SEC) once again reminded 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 direct funds to projects deployed in the DeFi decentralized financing market.
According to the SEC, the greatest threat comes from crypto-credit platforms, which have recently become frequently 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.
A big blow to the industry was dealt by the collapse of the Terra ecosystem in early May. This event was the trigger for volatility and a further collapse of the digital currency market.
In a statement, the SEC noted:
Investors are advised to take a closer look at each DeFi project before joining it, as deposit and lending services are not regulated by Thailand’s supervisory authorities.
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