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Thai SEC Gives Orders To Crypto Companies Regarding Ads

04 Sep 2022 By: Simran Mishra
Thai SEC Gives Order

Thailand is doing everything possible to monitor the bitcoin market. Recent scandals and frauds in the industry have highlighted the need for effective consumer protection measures. 

The Thailand SEC has most recently evaluated advertising terms and implemented new regulations, including a directive requiring organisations to alert consumers to investment risks.

Thai SEC urges companies to highlight investing risks in advertisements.

In a formal press release on Thursday, Thailand SEC notified the changes to the advertising rules. In order to guarantee a sanction-free advertising approach, the SEC underlined a few guidelines that digital asset entities must abide by. One of the rules states that companies shouldn't mention investment risks when promoting a product.

The risk warning must to be clear and easy to understand, according to the Thailand SEC. Entities should display any unfavourable information about the product in addition to hazards. The Thai government has observed a pattern of rigorous risk minimization in cryptocurrency marketing. As a result, the risks associated have been minimised.

Now, cryptocurrency is under the direction of the Central Bank of Thailand.

Other advertising regulations have been implemented in Thailand in addition to the risk notification guideline. One of these regulations states that the information in the advertisement must be accurate. There shouldn't be any exaggerations or false representations of the facts, the SEC stated in a press release.

The Thailand SEC further stated that only official channels should be used for advertising. This will make it easier for the watchdog to monitor the assets that companies are marketing and weed out the more dangerous ones. The regulatory authority did note, however, that organisations are free to choose the channels via which they wish to market their services.

Recent years have seen a sharp increase in bitcoin ownership in Thailand. This is a result of both the country's vigorous marketing of digital assets and the troubles with the global economy. Due to the increase in adoption, the industry needs to be adequately regulated. Thailand recently granted the Central Bank of the nation jurisdiction over managing digital assets in order to accomplish this. To establish effective regulations, the Central Bank and SEC are anticipated to collaborate.