The Securities and Exchange Commission (SEC) of Thailand has introduced new regulations regarding crypto advertising due to increased government scrutiny of the sector.
In a statement on Thursday, the SEC said, “The new rolled out regulations include presenting the potential investment risks in ads and offering a balanced view of risk and returns. Additionally, detailed information on ad terms must be given to regulators. Now, operators have 30 days to comply with the new regulations.”
“Operators must give details of ads and spending including the use of influencers and bloggers to the SEC including terms and time frame,” the commission added.
The SEC also pointed out that crypto businesses in Thailand make extensive use of digital advertising and invest heavily in billboards promoting the sector all over Bangkok.
Recently, Thailand’s regulator levied fines against cryptocurrency businesses following a global decline in the value of digital currencies.
Meanwhile, an executive from a local operator, Bitkub – Samret Wajanasathian, has been fined 8.5M baht (Approx $231,670.75) this week for insider trading. However, he is planning to appeal the decision soon.
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On the other hand, SCBX Pcl – Thailand’s fourth-largest lender by assets, pulled out of a $500 million acquisition of Bitkub over regulatory concerns last month. Meanwhile, Zipmex was fined 1.92M baht on August 31 for suspending withdrawals in late July.
However, the startup immediately issued a statement on its social media channels. In a Facebook post, Zipmex stated, “It was closely monitoring the terms of the penalty with its legal counsel.”
Here’s a list of Thailand’s new rules regarding crypto advertising:
- False, deceptive, or overstated claims are not permitted in advertisements.
- Risk warnings must be obvious and noticeable.
- The advertisements must present impartial perspectives, mentioning both positive and negative aspects.
- Crypto companies must restrict their advertising to official platforms like their websites.