Thai cryptocurrency advertisements are going to have to adhere to strict guidelines formulated by the SEC as they seek to conform to comparable standards.
Thailand’s Securities and Exchange Commission will tighten regulations for cryptocurrency firms operating in the country by October 2022.
The Thai SEC instructed cryptocurrency businesses operating in the country via email that advertisements about digital currencies should contain clear investment warnings to customers on September 1. The statement was later posted on the SEC website.
The Securities and Exchange Commission has implemented new standards for cryptocurrency-related ads in response to several advertising campaigns that failed to warn customers concerning their specific investment risks adequately.
The new standards will prohibit advertisements from making false, misleading, or exaggerated claims and include investment warnings. The correspondence from the Securities and Exchange Commission also requests balanced advertising.
This would require mentioning both positive and negative aspects of the products or services being presented.
To better protect themselves from regulatory-related fallouts, companies will have to restrict influencer marketing that displays cryptocurrencies in their publications to “official channels” like their own website.
Furthermore, they’ll be compelled to reveal all available information regarding advertisements and expenditures to the Securities and Exchange Commission (SEC).
Bitkub and Zipmex, a few of the more prominent cryptocurrency exchanges, advertise their products and services to prospective clients on increasingly large billboards and in public transport stations.
More traditional services might be advertised in public locations provided that they’re not within road rolling stock, per the SEC’s directive.
The Thailand SEC has mandated that all businesses adapt their marketing approaches until the bureau develops the necessary frameworks.
This includes updating or amending existing ads in print, online, and real-world platforms.
August 2022 was a busy month for the Thai Securities and Exchange Commission as it granted licenses to four new cryptocurrency-related businesses.
The SEC concluded the move was in-line with other standards established in other jurisdictions, such as the UK, Singapore, and Spain, which had previously established more stringent regulations for cryptocurrency advertising.
In addition, the watchdog additionally fined Bitkub chief technology officer Samret Wajanasathian for the alleged insider trading of its KUB token. Will this new development allow crypt projects to flourish in Thailand or its another impending market loss for Crypto Companies in their territories?