Thailand’s Securities and Exchange Commission (SEC) has now introduced strict rules concerning the promotions as well as advertising of crypto.
Cryptocurrency companies are now expected to follow these newly initiated rules in order to bring down investment risks.
This development happened this year itself as the rules were supposedly expanded to newer verticals which include Digital Assets and Blockchain. The rules have made it necessary for these companies to display their investment risk.
Not only that, the companies are required to display a balanced format of both risks and rewards. Additionally, such firms will be responsible to provide all the information on advertising terms to the regulator.
Thailand’s SEC stated,
Operators must give details of ads and spending including the use of influencers and bloggers to the SEC including terms and time frame.
These new rules provide leeway to the new digital asset services that are participating in promoting services. They have been given a 30 days time frame to get on board with the newest rules and regulations.
Thailand’s Crypto Industry Growth
Thailand has been one of the economies that have embraced digital assets and blockchain easily. The industry in Thailand has been growing and moving ahead at an increased pace.
It has been a profitable industry due to high retail demand. It has been supposedly reported that Thai crypto companies have been running heavy campaigns on digital platforms as well as billboards spread across Bangkok, Thai’s capital.
These new restrictions do not allow the inclusion of exaggerated or untrue information about digital asset companies. This information includes clarity on user numbers and also about risk warnings about investing in digital assets.
Not just Thailand, there are other countries that introduced a whole new angle to the crypto regulations.
For instance, The UK had also warned and taken down several campaigns related to crypto companies. Arsenal, the football club also got into trouble for not displaying enough about their disclosures and also for misleading ads.
Thai Authorities With The Crypto Crackdown
Thai authorities have also been involved in recent crackdowns on errors within the crypto industry. Thailand SEC has current fined Samret Wajanasathian which is an executive of a Bitkub subsidiary.
The amount was near 8.5 million Baht which amounts to $234,000. The platform was accused of insider trading. The platform has decided to appeal against the order. The Crypto sector in Thailand is experiencing the effects of the recent crypto market turmoil. Banking giant, SCB, had recently retraced from acquiring a controlling state at Bitkub.
The reason was that there had been regulatory issues. Not just Bitkub, Zipmex which is another important exchange was fined 1.92 million baht. The reason was for suspending withdrawals. Thailand is also currently working on its central bank digital currency while scrutinising the current thriving digital asset sector.
Featured image from UnSplash, chart from TradingView.com