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Thailand has introduced tighter rules that will oblige crypto companies to duly inform potential customers of the investment risks on their advertisements. The new regulations also prohibit businesses in the industry from making misleading or exaggerated claims.
Securities Watchdog Adopts Stricter Advertising Rules for Crypto Platforms in Thailand
Thailand’s Securities and Exchange Commission (SEC) has approved new requirements for crypto ads, Bloomberg and Reuters reported quoting the regulator. According to a statement released on Thursday, the changes come after the SEC found that some advertisements lacked any warnings about the risks associated with cryptocurrencies or featured only positive information.
Crypto firms in Thailand will now be obliged to clearly indicate the relevant risks for investors in their ads and the warnings must be easy to notice. They should present balanced views of the expected returns and mention both positive and negative factors. The advertisements must not feature misleading, exaggerated or false claims.
Thai crypto businesses, which have been advertising heavily through digital media and billboards, must now limit the promotion to official channels such as their own websites. They will also have to provide regulators with information about the advertising terms. The securities watchdog explained in the announcement:
Operators must give details of ads and spending, including the use of influencers and bloggers to the SEC, including terms and time frame.
Companies working with crypto assets in Thailand will have 30 days to comply with the new regulations rolled out by the SEC this week. The tightening of the advertising rules follows a global market slump that affected many entities in the industry.
One example is Zipmex, a crypto exchange operating under a Thai license and in other jurisdictions. The coin trading platform and its regional parent, Zipmex Pte, halted withdrawals last month. In mid-August, the latter was granted three months of protection from creditors by a court in Singapore, where authorities consider stricter rules for retail crypto investors.
The SEC recently fined Zipmex 1.92 million baht (over $50,000) for suspending withdrawals. Penalties were imposed on other crypto companies, too. An executive from the Thailand-based cryptocurrency exchange Bitkub was fined 8.5 million baht (more than $230,000) for alleged insider trading.
Do you expect Thailand to tighten other crypto regulations as well? Tell us in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Kollawat Somsri
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