Thai SEC creates new crypto advertising rules
Key points to remember
- The Thai SEC has introduced a set of six rules for cryptocurrency companies advertising services.
- Generally speaking, these rules will ensure that clear warnings are provided and will otherwise limit advertising options.
- The rules went into effect September 1, and all listings must be reviewed within 30 days of the effective date.
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Thailand’s Securities and Exchange Commission has announced that it will create strict rules for cryptocurrency companies that advertise in the country.
Thailand’s SEC to regulate ads
Thai regulators are set to heavily regulate crypto advertisements.
The Thai Securities and Exchange Commission (SEC) has issued a statement stating that the regulator would impose strict rules for crypto-related ads.
Six rules were set out for advertisers in today’s statement. First, the Thai SEC insisted that advertisements must not be false or misleading. The regulator specifically warned against inflating the number of users.
Second, the regulator said advertisers must provide details of advertising costs. Third, he said warnings should be clear and easy to read, highlighting both opportunities and risks.
The SEC also said advertising of specific cryptocurrencies can only be done through limited channels, such as official websites. However, crypto companies will still be able to advertise their general services on open channels.
The SEC also said that commercial operators must deal with advertising services. Finally, the SEC said it would rescind an unspecified provision regarding introductory brokerage agents (IBAs), who typically refer clients to brokerage services.
The new set of rules went into effect on September 1. All advertisements published before the change had to be reviewed within 30 days.
This is not the first high-profile regulation introduced by the SEC in Thailand. Earlier this year, it effectively banned cryptocurrency as a form of payment.
The Thai SEC also announced enforcement action and a $234,000 fine against crypto exchange Bitkub for insider trading on August 30.
However, the SEC’s strict policies have not stopped it from granting its approval to crypto companies. The regulator granted licenses to four new cryptocurrency exchanges in August.
Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and other cryptocurrencies.
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