Crypto Ads In Thailand Have To Provide Risk Disclosure As Per SEC

Thailand’s Securities and Exchange Commission (SEC) has now introduced strict rules regarding cryptocurrency promotions and advertising.

Cryptocurrency companies should now follow these newly launched rules in order to reduce investment risks.

This development happened this year as the rules would be extended to newer verticals which include digital assets and Blockchain. The rules made it necessary for these companies to show their investment risk.

Not only that, companies are required to show a balanced format of risks and rewards. In addition, these companies will be responsible for providing all information on advertising terms to the regulatory authority.

The Thai SEC said,

Traders must provide the SEC with details of announcements and expenses, including the use of influencers and bloggers, including terms and time frame.

These new rules leave room for new digital resource services that participate in the promotion of services. You have been given 30 days to become part of the latest rules and regulations.

Growth of the cryptocurrency industry in Thailand

Thailand was one of the economies that easily embraced digital assets and blockchain. The industry in Thailand has grown and is moving at an accelerating pace.

It has been a profitable industry due to high retail demand. It has allegedly been reported that Thai crypto companies have been conducting heavy campaigns on digital platforms and billboards scattered around Bangkok, the capital of Thailand.

These new restrictions do not allow for the inclusion of exaggerated or false information about digital asset companies. This information includes clarity on user numbers and also on risk warnings about investing in digital assets.

Not just Thailand, there are other countries that have introduced a whole new point of view in cryptocurrency regulations.

For example, the UK had also warned and withdrawn several campaigns related to cryptocurrency companies. Arsenal, the football team, also got into trouble for not showing enough on their revelations and also for misleading announcements.

Thai authorities with the crackdown on cryptocurrencies

Thai authorities have also been involved in recent crackdowns on errors within the cryptocurrency industry. Thailand SEC has currently fined Samret Wajanasathian, a manager of a subsidiary of Bitkub.

The amount was close to 8.5 million baht which amounts to $ 234,000. The platform was accused of insider trading. The platform has decided to challenge the order. The cryptocurrency sector in Thailand is suffering from the effects of the recent turmoil in the cryptocurrency market. The banking giant, SCB, had recently retraced the acquisition of a controlling state in Bitkub.

The reason was that there had been regulatory problems. Not just Bitkub, Zipmex, which is another major exchange, was fined 1.92 million baht. The reason was the suspension of withdrawals. Thailand is also currently working on its central bank digital currency as it examines the current burgeoning digital asset sector.

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