Thailand has introduced stricter rules, requiring cryptocurrency companies to formally inform potential clients of the investment risks in advertising. The new regulations also prohibit companies in the industry from making misleading or exaggerated claims.
Security Watchdog Adopts Stricter Advertising Rules For Thai Crypto Platforms
Securities and Exchange Commission of Thailand (SEC) has approved new requirements for crypto advertising, Bloomberg and Reuters reported, citing regulators. The change came after the SEC found that some ads lacked warnings about the risks associated with cryptocurrencies or featured only positive information, according to a statement issued Thursday. .
Cryptocurrency companies in Thailand must clearly indicate the risks associated with investors in their advertisements, and warnings should be easily recognizable. It should present a balanced view of expected returns, addressing both positive and negative factors. Ads must not feature misleading, exaggerated or false claims.
Cryptocurrency businesses in Thailand, which have done extensive advertising through digital media and billboards, should limit promotions to official channels such as their own websites. We also need to provide regulatory authorities with information about our advertising terms. The Securities and Exchange Commission explained in a statement:
Operators must provide the SEC with advertising and spending details, including terms and duration, including the use of influencers and bloggers.
Companies dealing in crypto assets in Thailand will be given 30 days to comply with new regulations announced by the SEC this week. Tighter advertising regulations follow a global market downturn that has affected many entities in the industry.
One example is Zipmex, a cryptocurrency exchange operating in other jurisdictions under a Thai license. The coin trading platform and its regional parent company, Zipmex Pte, Withdrawal stop last month. In mid-August, the latter was granted three months protection from his creditors by a Singapore court. stricter rules For retail crypto investors.
The SEC recently fined Zipmex 1.92 million baht (over $50,000) and suspended withdrawals. Penalties were also imposed on other crypto companies. An executive at Thailand-based cryptocurrency exchange Bitkub has been fined 8.5 million baht (more than $230,000) for alleged insider trading.
Do you think Thailand will tighten other crypto regulations as well? Let us know in the comments section below.
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