The Securities and Exchange Commission (SEC) of Thailand has announced the strengthening of rules surrounding cryptocurrency companies in an effort to protect retail investors in the wake of the massive selloff in the digital asset market.
According to the Bangkok Post, the SEC said in an emailed statement that advertisements for virtual tokens must include clear and visible warnings about the risks of investing in cryptocurrencies. Information on advertising terms must also be given to regulators. The SEC said:
Operators must give details of ads and spending including the use of influencers and bloggers to the SEC including terms and time frame.
The regulator added that operators had 30 days to comply with the new rules.
The new advertising rules come after locally licensed cryptocurrency exchange Zipmex, and its regional parent company halted some withdrawals last month. Zipmex’s parent company, Zipmex Pte, was granted three months of creditor protection by a Singapore Court in August.
Advertising for cryptocurrency firms is prevalent in Thailand and advertise heavily on digital media and billboards promoting the industry. Advertisements can be seen throughout the country’s capital city Bangkok. The SEC tightened rules after it discovered that some ads contained warnings about the inherent risks of cryptocurrencies, while other promotions only promoted positive information.
Tighter crypto advertising regulations include:
- Warnings of risks must be clear and easily noticeable
- Advertisements must feature balanced views, mentioning both positive and negative factors
- Advertisements must not feature false, misleading, or exaggerated claims
- Cryptocurrency firms must limit their advertising to official channels such as their websites.
Thailand has been cracking down on its crypto industry ever since the collapse of Zipmex. Earlier this week, Samret Wajanasathian, an executive from local crypto exchange Bitkub, was fined $235 for insider trading. In addition to being ordered to pay the fine of 8.5 million Thai baht, he was barred from holding an executive position for 12 months by the SEC.
Last week, the country’s oldest commercial bank, Siam Commercial Bank, backed out of a deal to buy the majority share of Bitkub, citing unresolved issues with the securities regulator.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/09/thailand-tightens-rules-on-cryptocurrency-advertisement