By Mark Ackman
New cryptocurrency regulations have been introduced in Thailand under which crypto companies would be obligated to inform their customers of the investment risks in every advertisement.
In addition, new businesses in the crypto space would also not be allowed to make any exaggerated, or misleading claims.
New crypto ad regulations
The Securities and Exchange Commission (SEC) in Thailand had given approval for new regulations that will be applicable to cryptocurrency ads in the country.
On Thursday, a statement disclosed that the SEC had decided to make some changes after they had discovered that some of the crypto ads did not have any warnings.
It believes that the ads should be clear about the risks associated with cryptocurrencies and should not just feature positive information about them.
Under the new rules, all crypto businesses that are operating in Thailand will have to highlight the relevant risks for potential investors in all advertisements.
Most importantly, the warnings should also be noticeable. These are also expected to provide a balanced view of the returns that can be expected.
They should also mention the positive as well as the negative factors associated with cryptocurrency. It is also essential to note that the ads should not have any exaggerated, misleading, or false claims.
Channel limits
The other restrictions that have also been introduced apply to the channels that can be used by crypto companies for promoting their products and services.
Up until now, the companies were able to make use of billboards and digital media for their advertisements, but now they will be limited to using official channels, like their own websites.
Furthermore, they will also have to provide regulatory authorities with information pertaining to the advertising terms.
According to the securities watchdog, the operators need to share details about their advertisement and the spending associated with it, including the use of bloggers and influencers.
They have to share details with the SEC, such as the time frame of the advertisement and the terms as well.
The deadline
The SEC also stated that there are 30 days that have been given to companies dealing with crypto assets in the country to comply with the new rules that were introduced this week.
These advertisement rules have been tightened in Thailand after the crypto market saw a global slump that took a toll on a number of companies in the industry.
Zipmex crypto exchange, which is based in Thailand, was also one of the companies to have felt the impact.
Last month, the trading platform as well as its parent company, Zipmex Pte, put a stop to their withdrawals.
They also sought three months’ protection in Singapore from creditors, where stricter rules are applicable for those engaged in retail crypto trading.
The SEC in Thailand had recently imposed a fine on Zipmex worth 1.92 million baht because of its decision to pause withdrawals. Other crypto companies also had penalties imposed.
Bitkub is another crypto exchange operating in Thailand and one of its executives was fined for insider trading, which was around 8.5 million baht.