Thailand is leaving no stone unturned in its oversight of the cryptocurrency industry. Recent debacles and scams in space have highlighted the need for adequate consumer protection measures. More recently, the Thailand SEC reviewed advertising terms and issued some new rules, including an order for entities to notify consumers of investment risks.
Thai SEC wants companies to show investment risks in ads
Thailand SEC announced the changes to the advertising regulations in an official press release Thursday. The SEC highlighted certain rules that digital asset entities must follow to ensure a sanction-free advertising model. One of the guidelines is that companies should not include an investment risk warning when advertising a product.
The SEC said most crypto entities like to leave risk information when advertising products. This intentional omission attracts investors to patronize the product, with limited knowledge of the risks involved.
Thailand SEC said the risk warning must be unambiguous and easy to notice. In addition to the risks, entities should display any negative information about the product. Thai authorities have noted a trend towards meticulous concealment of investment risks in crypto promotions. This has led to underestimating the dangers involved.
The Central Bank of Thailand now has control over cryptocurrencies
In addition to the risk notification guidelines, Thailand has also established other advertising rules. One of these rules is that the information in the announcement should be free of factual distortions. According to the SEC press release, there should be no exaggeration or misrepresentation of the facts.
Additionally, the Thailand SEC noted that advertising should only be done on official channels. This will help the watchdog check what activities the companies are promoting and rule out the extremely risky ones. However, the regulatory body said entities can advertise their services in any channel of choice.
Thailand has seen a rapid spate of cryptocurrency ownership in recent times. This is due to global economic problems and the aggressive promotion of digital assets in the country. With this increase in adoptions, the need arises to adequately regulate the sector. To do this, Thailand recently gave the country’s Central Bank authority over the supervision of digital assets. The central bank should work in tandem with the SEC to enact efficient rules.
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