One of the top Thai regulators has stressed the necessity to establish stricter regulations regarding advertisements that are related to cryptocurrency.
Thailand was the latest country to be added to the ever-expanding number of countries considering whether or not they should revise their crypto laws following the collapse and recovery of the FTX currency exchange.
It also plans to tighten industry regulations and place a greater emphasis on protecting investors. This is consistent with practices in most of these countries.
According to a Bangkok Post report, the Securities and Exchange Commission of Thailand (SEC) is considering imposing stricter regulations for digital assets in order “to imitate global market.”
According to reports, authorities from SEC pointed out the failures at FTX, Three Arrows Capital and TerraUSD. Additional examples were also provided.
Authorities expressed concern about the advancements in cryptocurrency advertising. This included the use of “finfluencers”, to disseminate messages. They may have been misleading the public and made them take unnecessary investment risks.
They concluded that the digital asset business sector was “vulnerable” and needed some oversight.
The SEC identified three main areas where it will focus its efforts: investor protection, regulation of cryptocurrency advertisements, cybersecurity, and the avoidance or conflict of interest. These are the main areas in which the agency will concentrate its efforts.
The government has created a working group that includes both business and public officials to assess and adjust the existing rules. This group will evaluate and draft any necessary adjustments to the existing rules.
It’s important to note that this isn’t the first time that Thailand’s SEC has taken action against crypto advertising restrictions.
It required market players to give their consumers clear warnings regarding investments when it entered into force in September. They have been following this requirement since then.
The Securities and Exchange Commission (SEC), which was holding the hearing, opened a public hearing about its plan to limit cryptocurrency platforms’ ability to offer or support digital asset depositories. The SEC’s attempts to limit cryptocurrency platforms from supporting digital asset depositories and offering them was the topic of the hearing.
Zipmex, considered one of the largest exchanges at a national level on a country-level, was affected by the wave failures that hit the cryptocurrency industry in Thailand.
The Securities and Exchange Commission (SEC), has charged Zipmex and Akalarp Yimwilai with violating local rules. They have also sent the matter to the local police for further investigation.