Thailand’s Securities and Exchange Commission (SEC) is set to impose strict regulations on cryptocurrency-related adverts in the country.
By email, the Thai SEC reminded cryptocurrency-related companies operating there that, as of September 1, all consumer-facing advertisements for digital currencies must include unambiguous investment warnings. Later, the announcement was published on the SEC website.
In response to a series of marketing campaigns that failed to contain investment risk warnings, the securities regulator established new requirements for advertisements related to cryptocurrencies.
Ads must comply with the new requirements, which forbid making false, deceptive, or inflated promises or including cautions about investing dangers. The SEC also advocates for balanced advertising, which would require mentioning both the benefits and drawbacks of the goods or services being marketed.
Companies will be required to limit their use of “official channels,” such as their own websites, for advertising that directly promotes cryptocurrencies.
They will also have to provide the SEC with information on all advertisements and spending, including the use of bloggers and influencers on social media and the conditions under which they were used.
Famous cryptocurrency exchanges like Bitkub and Zipmex advertise their mobile applications and services to potential consumers in the nation on enormous street billboards and in public transportation hubs. According to the SEC’s directive, service advertising is still legal in public areas.
As the SEC continues to build frameworks that are positioned to safeguard domestic retail investors, companies have been given a month to comply with the new rules. This would entail modifying or upgrading current advertisements across print, internet, and offline venues.
The SEC further stated that the action was consistent with legal requirements established in other nations like the United Kingdom, Singapore, and Spain, which had previously established stronger regulations for advertising relating to cryptocurrencies.
The Thai SEC had a busy month in August 2022 as it authorized the operation of four new cryptocurrency-related firms. The regulator also scrutinized Bitkub, fining its CTO Samret Wajanasathian for allegedly engaging in insider trading of the company’s KUB token prior to a lucrative investment agreement with Thailand’s Siam Commercial Bank.