The Securities and Exchange Commission of Thailand (SEC Thailand) has asked crypto companies operating in the country to include clear and visible warnings about the risks associated with virtual tokens and crypto investments.
SEC Guidelines on Encryption Ads
In an email last week, the Capital Markets Regulatory Authority asked companies to refrain from providing false and misleading information in their advertisements. They were also asked to provide information about the terms of the announcement to the Securities and Exchange Commission. New rules must be adhered to within 30 days, and old, incompatible ads must be removed.
“Operators must provide information about advertising and expenditures, including the use of influencers and bloggers, to the SEC, including terms and timeframes,” the SEC said.
New SEC guidelines for cryptocurrency advertising prohibit false, misleading and exaggerated claims and provide advertisements with clear and visible warnings about the risks. Crypto companies have been urged to limit advertising to official platforms such as their websites and present a balanced image by mentioning the positive and negative aspects of digital assets.
Actions against Zipmex and Bitkub
On Wednesday, the Securities and Exchange Commission (SEC) fined Zipmex Thailand 1.92 million baht (about $52,344) for abruptly stopping trading on its platform without complying with the standards and halting deposits and withdrawals.
Earlier this week, the agency also fined CTO $200,000, Thailand’s largest cryptocurrency exchange for insider trading. CTO Samret Wajanasathian made a large purchase of the Bitkub native KUB between September and November 2021 after learning that Siam Commercial Bank (SCBX) was negotiating the acquisition of the digital asset exchange.
On Sunday, SCBX announced that it will not embark on its planned $500 million acquisition of Bitkub due to these issues.
More stringent advertising standards in Spain, UK
The SEC’s tough stance on crypto advertising comes on the heels of a broader market downturn that has seen $2 trillion disappear from market capitalization in about six months. Thailand is the latest in a growing list of countries that have tightened their crypto advertising policies.
In January, Spain’s National Securities Exchange Commission introduced a new set of guidelines for advertising cryptocurrencies. She said crypto companies must “ensure that advertising for products presents content that is real, understandable, not misleading and includes a prominent warning of the associated risks.”
Earlier this month, the UK’s ad watchdog banned two AFC Arsenal fan code ads for failing to “demonstrate the risks of investing in cryptocurrencies” and downplaying “serious and costly financial decisions”.
Crypto listings appeared after Thai SEC Toughens amid the broader market pullback for the first time on CryptoPotato.