Thailand’s Securities & Exchange Commission (SEC) announced Thursday that it has tightened cryptocurrency firms’ advertising rules.
SEC sent out an email on Thursday to crypto-related companies in the country, advising them that advertising for digital assets must contain clear and visible warnings regarding the risks associated with investing in cryptocurrencies.
After finding that some advertisements did not contain warnings about crypto risk, and others only provided positive information regarding the topic, the SEC tightened their rules.
The details of the stricter regulations for crypto advertising are listed by the regulator:
· Advertisements must not feature false, misleading or exaggerated claims
· Warnings of risks must be clear and easy to notice
· The ads must feature balanced views, mentioning both positive and negative factors
· And crypto firms must limit advertising to official channels like their websites
The authorities recently announced plans to increase protections for retail investors.
The SEC has enforced new advertising rules after Zipmex (a crypto exchange licensed locally) and Zipmex Pte (a regional parent company), headquartered in Singapore, stopped withdrawals in July because of a liquidity problem following exposure to Babel Finance and Celsius Networks.
Zipmex is a crypto-exchange that operates in markets like Singapore and Thailand. It stopped withdrawals after a series of defaults further affected the industry.
According to the regulator, the second-largest exchange of digital assets in Thailand was fined $1.92 by the local regulator. statement published on Security and Exchange Commission, due to a failure to abide by the standards of professional ethics During the July haltThe Royal Decree on Digital Asset Trade 2018,
Dealings with Babel Finance, a troubled crypto lending firm, and Celsius Network Ltd led to financial problems for the Asian platform.
Zipmex was exposed to Babel for $48 million and Celsius for $5 million, which led to financial problems.
Consumer Protection – Efforts Made
Thailand’s latest move joins countries like the U.K. or Singapore in trying to protect retail investors following a $2 trillion sale of digital asset markets.
In January, the U.K. government strengthened cryptocurrency ads’ rules to bring them in line with other financial assets.
Financial Conduct Authority (UK) – A U.K. financial watchdog, said that the rules would increase consumer safety and encourage innovation.
The U.K. Advertising Standards Authority sent warnings and bans to a number of crypto companies about the promotion of Bitcoin in March 2013.
In January, Crypto.com banned two advertisements. The regulator stated that Crypto.com encouraged people to buy Bitcoin with credit cards.
In January, Singapore’s financial regulator, The Monetary Authority of Singapore (the Monetary Authority of Singapore), prohibited digital asset players, including those who promote crypto services in public spaces. This resulted in the removal of advertising in MRT stations as well as the dismantling of Bitcoin ATMs.
The regulator is considering other measures to discourage retail crypto investors from accessing it.
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