Thailand's SEC to Apply Stringent Guidelines for Crypto Advertising

Thailand's SEC to Apply Stringent Guidelines for Crypto Advertising

Thailand has introduced stringent rules for crypto companies to duly inform potential customers of the investment risks in their advertisement campaigns. The new regulations also prohibit companies in the industry from making misleading or exaggerated claims.

The SEC Requires Crypto Advertising to Include Warnings

The Securities and Exchange Commission (SEC) of Thailand has approved new guidelines for crypto ads, according to Bloomberg and Reuters. The changes have been implemented after the SEC noticed that the advertisements lacked warnings about the risks associated with cryptocurrencies and featured only positive information, according to a statement released on Thursday.

Crypto firms in Thailand are now mandated to disclose the relevant risks involved for investors in their ads, and the warnings must be easy to notice. They should present balanced views of the expected returns and mention both positive and negative factors. The advertisements should not feature misleading, exaggerated, or false claims.

Thai crypto companies that advertise heavily through digital media and billboards must now limit their promotions to official channels such as their websites. They are also required to provide regulators with information about the advertising terms and conditions. The securities watchdog explained in the announcement:

"Operators must give details of ads and spending, including the use of influencers and bloggers, to the SEC, including terms and time frames."

Companies working with crypto assets in Thailand will have 30 days to comply with the new regulations announced by the SEC this week. The tightening of the advertising rules follows a global market slump that affected many entities in the industry.

An example is Zipmex, a crypto exchange operating under a Thai license and in other jurisdictions. The coin trading platform and its regional parent, Zipmex PTE, halted withdrawals last month. In mid-August, the latter was granted three months of protection from creditors by a court in Singapore, where authorities consider stringent rules for retail crypto investors.

The SEC recently fined Zipmex 1.92 million baht (over USD 50,000) for suspending withdrawals. Penalties have been imposed on other crypto companies, too. An executive from the Thailand-based cryptocurrency exchange Bitkub was fined 8.5 million baht (more than USD 230,000) for alleged insider trading.