Thailand's securities watchdog aims to protect crypto investors from misleading advertising.
The Office of Securities and Exchange Commission (SEC) in Thailand, the country's crypto and securities regulator, has decided to tighten rules for crypto advertising.
According to a statement shared by the regulator, starting October 1st, crypto-related companies, especially those advertising digital currencies, must provide investment warnings in their advertisements.
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The new regulations come after the SEC noticed that many crypto advertisements include only positive information and lack warnings regarding the risks of investing in crypto.
A significant number of crypto companies operating in the country are advertising their services on digital media, billboards, or public transport hubs. However, it seems that it has come to an end. The SEC is now limiting crypto advertising to official channels such as the company’s websites.
Moreover, the companies are obligated to share information about possible risks and give warnings associated with crypto investments. Above all, the SEC highlights that crypto firms must not provide information, which is exaggerated, misleading, or include false claims.
The companies are also advised to provide balanced advertisements meaning they should present positive and negative factors related to the advertised products or services.
Thailand's securities watchdog has given companies a month to comply with new regulations. According to the SEC, the new rules have been implemented in the footsteps of the United Kingdom, Dubai, Singapore, and Spain, which have recently launched similar regulations.
At the beginning of August, SEC issued operation approvals to four crypto companies, crypto exchange T-BOX Thailand, two fund managing companies Leif Capital Asset Management and Coindee, and crypto broker Krungthai XSpring.
In other news, Thailand authorities received a great deal of criticism for not being able to protect Zipmex investors. It is worth noting that Zipmex halted its withdrawals on July 20th. Shortly after that, SEC launched an investigation attempting to investigate the aftermath that Zipmex withdrawal suspension had on investors.
As a result, Thailand’s SEC has fined Zipmex 1,92 million baht (around $52,287) for violating digital asset laws after halting its withdrawals.
