Thailand’s new regulations will require crypto companies in Thailand to inform their potential customers about the risks associated with investing. These new rules also ban businesses from misleading customers or making 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. A statement was released Thursday stating that the SEC made the modifications after finding advertisements which did not contain any warnings or only provided positive information about cryptocurrency risks.
Now, crypto companies in Thailand are required to make clear the potential risks and warn investors. These advertisements must present balanced views on the expected returns, and should mention both negative and positive factors. Advertisements must not make exaggerated, misleading or false claims.
Thai crypto companies, who have promoted heavily via billboards and online media, will now be restricted to promotion through official channels like their own websites. Regulators will need to be provided with details about their advertising terms. In the announcement, securities regulators explained:
Operators are required to provide details about ads and expenditures, as well as the influencers or bloggers used, and terms and times.
SEC will issue new regulations this week to companies dealing with Thailand’s crypto assets. These rules can be followed by 30 days. Due to a slump in global markets, many companies within the sector were affected by the tightening advertising regulations.
Zipmex is one example. It’s a cryptocurrency exchange that operates under both a Thai and other jurisdictions license. Zipmex Pte was the regional parent of Zipmex Pte and it stopped withdrawing funds last month. A court in Singapore gave the former three months protection against creditors in mid-August. Authorities there have tighter guidelines for retail crypto investors.
Zipmex was recently penalized by the SEC for suspending withdrawals. Others crypto companies were subject to the same penalties. For allegedly insider trading, Bitkub’s executive was given a fine of 8.5 million Thai baht (more that $230,000).
Are you expecting Thailand to also tighten crypto regulations? Let us know in the comment section.
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