Thai SEC publishes strict guidelines on cryptocurrency ads - Robotics Online
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Thai SEC publishes strict guidelines on cryptocurrency ads

09 Sep 2022

The Thailand Securities and Exchange Commission (SEC) has requested cryptocurrency firms operating within the country to be clear about the risks of investing in cryptocurrency assets.

Thai SEC published guidelines on crypto ads

The Thai SEC has urged crypto firms operating in Thailand to have a clear warning on their platforms about the risks associated with cryptocurrency assets. Last week, the regulator sent an email asking companies to refrain from providing false and malicious information in their crypto ads.

The Thai SEC has also asked these companies to share information on advertising terms with the SEC. The SEC expects that the new rules be complied with within 30 days. It also wants these firms to remove old ads that do not abide by the new rules. Crypto firms will be mandated to share details, such as using bloggers and influencers in the crypto ads.

The new guidelines published by the SEC also prevent using false, misleading, and exaggerated allegations and require that the ads contain clear and visible warnings on risks. Crypto companies have also been requested to limit their advertisements to their official platforms like websites and present the pros and cons of investing in digital assets.

The Thai SEC has taken a strong stance in the crypto sector. Last week, the regulator imposed a fine of 1.92 million baht against Zipmex Thailand. The fine came after the regulatory body suspended trading on its platform while failing to follow the due process of halting deposits and withdrawals.

The agency has also imposed a fine of $200,000 on the largest cryptocurrency trading in Thailand, CTO, over accusations of insider trading. The firm’s CTO, Samret Wajanasathian, reportedly bought large amounts of KUB tokens between September and November last year after finding out details of a takeover deal between Bitkub and Siam Commercial Bank. Last week, the Siam Commercial Bank announced it would halt the planned $500M takeover deal.

Crypto ad regulations globally

The stance of the Thai SEC on crypto advertisements comes amid a downturn across the broader cryptocurrency market. The crypto market has shed $2 trillion of its value this year alone. The bear market has led global regulators, including the Thai SEC, to devise more stringent measures on crypto ads.

The National Securities Market Commission of Spain launched new guidelines in January. The commission said cryptocurrency firms needed to provide explicit and non-misleading content when advertising their services to users.

The UK advertisement regulator has also banned two advertisements for Arsenal fan tokens over the failure of the issuers to reveal the risks that lie with cryptocurrency investments. The regulator also said that the lack of clarity underplayed the costly financial decision of these investments.
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