key takeaways
- Thailand’s SEC has introduced a set of six rules for cryptocurrency companies that advertise services.
- Broadly speaking, those rules will ensure that a clear warning is given and will otherwise limit advertising options.
- The rules took effect on September 1 and all advertisements must be amended within 30 days of the effective date.
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The Securities and Exchange Commission of Thailand has announced that it will put in place stricter rules for cryptocurrency companies advertising in the country.
Thailand SEC to regulate ads
Thailand’s regulators are set to heavily regulate crypto ads.
The Thai Securities and Exchange Commission (SEC) published a statement indicating that the regulatory body will introduce stricter rules for crypto-related ads.
Today’s statement sets out six rules for advertisers. First, Thailand’s SEC insisted that ads should not be false or misleading. The regulator has specifically warned against increasing user numbers.
Second, the regulator said advertisers would have to provide details about advertising costs. Third, it said warnings should be clear and easy to read, highlighting both opportunities and risks.
The SEC also stated that specific cryptocurrencies can only be advertised on a limited number of channels, such as official websites. However, crypto companies will still be able to advertise their normal services on open channels.
The SEC also said that business operators should take care of advertising services. Finally, the SEC said it would repeal an unspecified provision surrounding offering brokerage agents (IBAs), which typically refer clients to brokerage services.
The new set of rules came into effect from September 1. All advertisements published prior to the change were ordered to be revised within 30 days.
This is not the first piece of far-reaching regulation introduced by the SEC in Thailand. Earlier this year, it effectively banned cryptocurrencies as a means of payment.
Thailand’s SEC also announced enforcement action and a $234,000 fine against crypto exchange Bitkube on August 30 for insider trading.
However, the strict policies of the SEC have not stopped it from approving crypto companies. The regulator granted licenses to four new cryptocurrency exchanges this August.
Disclosure: At the time of writing, the author of this article owns BTC, ETH and other cryptocurrencies.