Thailand has tightened regulations that require crypto companies to inform potential customers about the risks associated with investing on their advertisements. Businesses in the sector are also prohibited from making exaggerated or misleading claims.
Securities Watchdog adopts stricter advertising rules for crypto platforms in Thailand
Bloomberg and Reuters reported that the Thailand SECurities and Exchange Commission ( SEC ) has approved new requirements regarding crypto ads. The changes were made after the SEC discovered that certain advertisements did not warn of the potential risks of cryptocurrencies, or contained only positive information.
The ads for crypto firms in Thailand must clearly state the risks to investors. They must present balanced views of expected returns and include both positive and negative elements. Advertisements must not make exaggerated, misleading or false claims.
Stricter rules apply to Thai crypto platforms
Thai crypto companies, which had been heavily advertising through billboards and digital media, will now have to limit their promotion to official channels like their websites. The advertising terms will be disclosed to regulators. In the announcement, the securities watchdog said:
Operators must provide details about ads and expenditures, including use of bloggers and influencers to the SEC.
The SEC has issued new regulations for companies that deal with crypto assets in Thailand. They will give them 30 days to comply. Due to a global market slump, many companies in the sector were affected by the tightening advertising rules.
Zipmex is one example of a crypto exchange that operates under a Thai license as well as in other jurisdictions. Last month, withdrawals were stopped by the coin trading platform and Zipmex Pte (the regional parent of Zipmex). A court in Singapore granted the protection to the latter three months of protection against creditors in mid-August. This is because authorities in Singapore consider more stringent rules for retail cryptocurrency investors.
Zipmex was recently penalized by the SEC for suspending withdrawals. Other crypto companies were also subject to penalties. For alleged insider trading, Bitkub’s executive was fined 8.5million baht (more that \$230,000) by the Thailand-based cryptocurrency exchange.
