Thailand has enacted strict laws requiring crypto companies to properly inform clients of investment risks in their advertisements. The new rules prohibit businesses in the industry from making misleading or exaggerated claims.
Securities watchdog approves strict 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, citing the regulator. According to a statement released on Thursday, the changes come after the SEC said some advertisements either lacked warnings about the risks associated with cryptocurrencies or contained only positive information.
Crypto companies in Thailand are now required to clearly indicate relevant risks to investors in their advertisements and the warnings should be easily identifiable. They should present a balanced view of the expected outcome and mention both positive and negative factors. The advertisements must not make misleading, exaggerated or false claims.
Thai crypto businesses that advertise heavily through digital media and billboards should now limit their promotion to official channels such as their own websites. They must also provide information to regulators about advertising terms. The securities regulator explained in the announcement:
Operators must provide details of advertising and spending, influencers and bloggers to the SEC, including terms and deadlines.
Companies dealing with crypto assets in Thailand will have 30 days to comply with new regulations issued by the SEC this week. The tightening of advertising regulations follows a global market downturn that has hit many parties in the industry.
One example is ZipMex, a crypto exchange operating in Thailand and other jurisdictions. The coin’s trading platform and regional parent, ZipMex Pty, stopped issuing funds last month. In mid-August, the latter was granted three months of protection from creditors by a court in Singapore, where authorities are considering tougher rules for retail investors.
The SEC recently fined ZipMex 1.92 million baht (over $50,000) for suspending withdrawals. Penalties have also been imposed on other crypto companies. An executive from Thailand-based cryptocurrency exchange Bitkub has been fined 8.5 million baht (more than $230,000) for insider trading.
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