Thailand has become the latest country in Southeast Asia to prohibit crypto exchanges from offering lending services, following in the footsteps of Singapore. The move is part of the country's regulatory efforts to prioritize investor protection in the crypto industry. The announcement was made by Thailand's Securities and Exchange Commission (SEC) in a recent release. The ban specifically targets "depository services that offer returns to depositors and lenders," effectively prohibiting exchanges from providing both lending and staking services. To further enhance investor protection, the Thai SEC has introduced a mandatory trading risks disclaimer that must be prominently displayed to customers. The disclaimer warns about the high risks associated with cryptocurrencies and advises investors to thoroughly understand these risks before investing, as they could potentially lose their entire investment. In addition to the ban on lending services, exchange operators are now required to ensure that users acknowledge the risks before using their services. Investor suitability assessments will also be conducted to determine the maximum amount users are allowed to invest in cryptocurrencies. It is worth noting that Thailand's regulatory stance on cryptocurrencies has evolved over time. While the country banned crypto payments last year, it still allowed consumers to invest in cryptocurrencies as assets. However, with the recent ban on lending services, Thailand is tightening its regulations even further. The new rules announced by the Thai SEC will take effect on July 31, 2023. This development closely follows a similar announcement made by the Monetary Authority of Singapore (MAS) earlier on the same day. Singapore also banned crypto exchanges from offering lending and staking services to retail customers. Additionally, the MAS now requires exchanges to move all customer assets into a Trust by the end of the year to prevent the mingling and trading of customer funds and mitigate the risk of incidents like the FTX collapse. The FTX incident, which occurred last November, resulted in a significant collapse of the multi-billion dollar exchange. It exposed poor bookkeeping practices and revealed that customer funds were sent to a sister company, Alameda Research, to cover losses from bad trades. Regulators worldwide are using this incident as a case study to inform their regulations and monitor the activities of exchanges more closely. As Thailand and Singapore take decisive steps to enhance investor protection and mitigate risks in the crypto industry, the actions of these countries are likely to influence the regulatory approach of other jurisdictions around the world.