Thailand SEC Sets New Advertising Regulations for Crypto Firm
Thailand SEC sets new stringent ads regulations which are being imposed on cryptocurrency companies that wish to advertise in the country.
The Securities and Exchange Commission (SEC) has most recently evaluated advertising terms and implemented new regulations, including a directive requiring organizations to alert consumers to investment risks.
The SEC issued a statement outlining the harsh regulations the regulatory body will impose on ads pertaining to cryptocurrencies.
Through a formal press release, Thailand SEC notified the changes to the advertising rules. As part of its effort to ensure a sanction-free advertising approach, the SEC underlined a few guidelines that digital asset entities must abide by. On September 1, the new set of regulations came into force. It was mandated that all prior-published advertisements be altered within 30 days. Six guidelines for advertising were provided.
First, the SEC of Thailand maintained that advertisements could not be deceptive or inaccurate. the regulator mandated that advertisers provide specifics regarding their advertising expenditures. Thirdly, it stated that warnings must be obvious and simple to understand while emphasizing both opportunities and risks. In crypto promotions, Thailand authorities have observed a trend of meticulous concealment of investment risks. As a result, the dangers involved have been understated.
Additionally, the SEC further stated that only a small number of channels, such as official websites, might be used to advertise particular cryptocurrencies. Nevertheless, cryptocurrency businesses will still be able to promote their standard services through open channels. This will make it easier for the regulators to monitor the assets that companies are marketing and weed out the more dangerous ones. The regulatory authority did note, however, that organizations are free to choose the channels via which they wish to market their services.
Business owners need to take care of advertising services, according to the SEC. Last but not least, the SEC said that it would reject an unspecified provision relating to introducing broker agents (IBAs), who often refer customers to brokerage services.
This is not the first extensive regulation the SEC of Thailand has put in place. It basically outlawed the use of cryptocurrencies as a form of payment earlier this year.
CBW - External Analyst