Thailand has introduced stricter regulations requiring crypto companies to formally inform potential customers of investment risks on their advertising. The new regulations also prohibit industry firms from making misleading or exaggerated claims.
Securities Surveillance Commission adopts stricter advertising rules for crypto platforms in Thailand
Thailand’s Securities and Exchange Commission (SEC) has approved new requirements for crypto advertising, Bloomberg and Reuters reported, citing regulators. According to a statement released Thursday, the changes were made after the SEC found that some ads lacked warnings about the risks associated with cryptocurrencies or carried only positive information.
Crypto companies in Thailand will henceforth be required to clearly indicate the relevant risks for investors in their advertisements, and the warnings must be easily noticeable. A balanced view of expected returns must be presented and both positive and negative factors must be mentioned. Advertisements must not contain misleading, exaggerated, or false claims.
Thai crypto businesses that have advertised heavily through digital media and billboards now need to limit promotion to official channels such as their websites. They must also provide regulators with information on advertising terms. The Securities Surveillance Commission explained in its announcement.
Businesses must provide the SEC with details of their advertising and spending, including the use of influencers and bloggers, including terms and duration.
Companies working with crypto assets in Thailand will have 30 days to comply with new regulations rolled out by the SEC this week. The tightening of advertising rules follows a global market downturn that has affected many entities in the industry.
One example is Zipmex, a crypto exchange licensed in Thailand and operating in other jurisdictions. The coin trading platform and its regional parent, Zipmex Pte, suspended withdrawals last month; in mid-August, the latter was granted three months of protection from creditors by a Singapore court as authorities consider stricter rules against private investors in crypto.
The SEC recently fined Zipmex 1.92 million baht (over $50,000) for halting withdrawals. Penalties were also imposed on other crypto companies. Executives of Thailand-based cryptocurrency exchange Bitkub were fined 8.5 million baht (over $230,000) for alleged insider trading.
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