- The Thai SEC has introduced a set of six rules for cryptocurrency companies advertising services.
- In general, these rules will ensure that clear notices are provided and otherwise limit your advertising options.
- The rules went into effect on September 1, and all announcements 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 SEC to regulate ads
Thai regulators are set to heavily regulate crypto ads.
The Thai Securities and Exchange Commission (SEC) issued a statement indicating that the regulatory body would impose strict rules for cryptocurrency-related advertisements.
Six rules have been established for advertisers in today’s statement. First, the Thai SEC insisted that the ads must not be false or misleading. The regulator specifically warned against inflation of user counts.
Second, the regulator said advertisers need to provide details on advertising costs. Third, he said the warnings need to be clear and easy to read, highlighting both the opportunities and the risks.
The SEC also said that advertising for specific cryptocurrencies can only be done on limited channels, such as official websites. However, cryptocurrency companies will still be able to advertise their general services on open channels.
The SEC also said that industry players need to take care of advertising services. Finally, the SEC said it would overrule an unspecified provision related to the introduction of brokerage agents (IBAs), which typically refer clients to brokerage services.
The new set of rules went into effect on September 1st. All announcements published prior to the change have been ordered to be reviewed within 30 days.
This isn’t the first piece of far-reaching regulation introduced by the SEC in Thailand. Earlier this year, it effectively banned cryptocurrency as a means of payment.
The Thai SEC also announced enforcement action and a $ 234,000 fine against cryptocurrency exchange Bitkub for insider trading on Aug.30.
However, the SEC’s strict policies have not stopped it from granting approval to cryptocurrency companies. The regulator licensed four new cryptocurrency exchanges this August.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.