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Crypto Ads in Thailand Must Feature Explicit Investment Warnings, New Regulations Require

02-Sep-2022 By: Shailja Joshi
Crypto Ads in Thaila

Thailand has enacted stricter regulations mandating cryptocurrency firms to duly inform potential clients about investment risks in their ads.

The new regulations also prevent industry firms from making false or inflated claims.

According to Bloomberg and Reuters, Thailand's Securities and Exchange Commission (SEC) has approved new guidelines for cryptocurrency advertisements. The revisions were made after the SEC discovered that certain advertisements lacked any caution about the risks associated with cryptocurrencies or featured only positive material.

Crypto firms in Thailand will now be required to properly mention the relevant risks for investors in their advertisements, and the warnings must be visible. They should give balanced perspectives on predicted returns, mentioning both positive and negative variables. The advertising must not make any statements that are misleading, inflated, or inaccurate.

Thai cryptocurrency companies who have been extensively promoting through digital media and billboards must now confine their promotion to legitimate channels such as their own websites. They will also be required to give information about the advertising terms to authorities. The securities watchdog explained in the announcement:

Operators must provide the SEC with details on advertisements and spending, including the use of influencers and bloggers, as well as terms and time frames.

Companies in Thailand dealing with crypto assets will have 30 days to comply with the SEC's new regulations, which were announced this week. The tightening of advertising regulations follows a global market downturn that has impacted many organizations in the industry.

One example is Zipmex, a cryptocurrency exchange that operates in Thailand and other countries. Last month, the cryptocurrency trading platform and its regional parent, Zipmex Pte, suspended withdrawals. In mid-August, a Singapore court gave the latter three months of creditor protection in mid-August, where authorities are considering stricter guidelines for retail crypto investors.

The SEC recently penalized Zipmex 1.92 million baht (more than $50,000) for suspending withdrawals. Penalties were also levied on other cryptocurrency firms. A Bitkub executive in Thailand was also fined 8.5 million baht (more than $230,000) for alleged insider trading.

Read also: Top Cryptocurrency News: dYdX Ends Contentious Promo, Citing 'Overwhelming Demand'

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