Thailand’s Securities and Exchange Commission may move to regulate decentralized finance (DeFi) projects in the country, including the issuance of digital tokens.

In an announcement on Sunday, the securities regulator said DeFi activity involving digital tokens such as liquidity provider tokens, governance tokens or tokens issued to those transacting in DeFi projects “must be licensed and abide by the specified rules.”

Under the Digital Asset Business Emergency Decree, issuing digital tokens must be authorized by the SEC. The issuer is required to disclose information and offer digital assets through token portals licensed under the decree, the regulator said.

The law also stipulates that crypto exchanges, digital-asset brokerages, digital-asset dealers, private fund managers and investment advisors must be be licensed by the Ministry of Finance.

See also: Thailand’s Fourth-Largest Bank by Assets Exploring DeFi Offering: Report

Comments from the regulator come after Thai DeFi project TukTuk Finance debuted on Bitkub Chain on Sunday, as reported by the Bangkok Post on Tuesday. The project’s native TUK token rose to several hundred dollars before plummeting beneath $1 within minutes.

“For traders, it is best to study the DeFi project before getting involved in both the technical and security aspects,” the SEC said. Traders “should check whether the service provider is a digital-asset business that is licensed and regulated by the SEC or other regulatory agencies under law.”

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