Crypto ads in Thailand must provide risk disclosure according to the SEC
Thailand’s Securities and Exchange Commission (SEC) has now introduced strict rules regarding promotions and advertising of crypto.
Cryptocurrency companies are now expected to follow these fledgling rules to reduce investment risk.
This development happened even this year when the rules were supposedly extended to newer verticals that include Digital Assets and Blockchain. The rules have made it necessary for these companies to show their investment risk.
Not only that, the companies are required to show a balanced format of both risk and reward. In addition, such firms will be responsible for providing all information about advertising conditions to the regulator.
Thailand’s SEC stated,
Operators must provide details of advertisements and expenditures including the use of influencers and bloggers to the SEC, including terms and timeframes.
These new rules give leeway to the new digital asset services that help market services. They have been given a time frame of 30 days to come up with the latest rules and regulations.
Growth in Thailand’s crypto industry
Thailand has been one of the economies that has readily embraced digital assets and blockchain. The industry in Thailand has grown and is moving forward at an increased pace.
It has been a profitable industry due to high retail demand. It has reportedly been reported that Thai crypto companies have been running heavy campaigns on digital platforms as well as billboards scattered across Bangkok, the Thai capital.
These new restrictions do not allow the inclusion of exaggerated or false information about digital asset companies. This information includes clarity about user numbers and also about risk warnings about investing in digital assets.
Not only Thailand, there are other countries that introduced a whole new angle to the crypto regulation.
For example, the UK had also warned and taken down several campaigns related to crypto companies. Arsenal, the football club also got into trouble for not showing enough about their disclosures and also for misleading advertising.
Thai authorities with the crypto crash
Thai authorities have also been involved in recent crackdowns on wrongdoing in the crypto industry. The Thailand SEC has now fined Samret Wajanasathian, who is the head of a Bitkub subsidiary.
The amount was close to 8.5 million baht which amounts to $234,000. The platform was accused of insider trading. The platform has decided to appeal the order. The crypto sector in Thailand is experiencing the effects of the recent turmoil in the crypto market. Banking giant SCB had recently backed out of acquiring a controlling stake in Bitkub.
The reason was that there had been regulatory problems. Not only Bitkub, Zipmex, which is another important exchange, was fined 1.92 million baht. The reason was suspension of withdrawals. Thailand is currently working on its digital currency for the central bank as they scrutinize the current booming digital asset sector.
Featured image from UnSplash, chart from TradingView.com
