The Thai Securities and Exchange Commission (SEC) found a lack of warnings in cryptocurrency ads about the risks associated with this asset class.
The regulator approved new, tougher rules for crypto advertising. The tightening followed a downturn in the market, which had a negative impact on local companies. The latest incident occurred with the Zipmex crypto exchange, which suspended withdrawals at the end of July. For which she received a $50,000 fine from the SEC.
Now crypto-currency companies in Thailand will be required to prescribe all the associated risks for investors wishing to invest in digital assets. At the same time, warnings should be easily visible and reflect a real view of this type of investment – reflect both positive and negative sides. Also, advertising is now prohibited from making exaggerated claims or outright misleading consumers.
On top of this, Thai cryptocurrency firms are now restricted in ad placements. While they were previously able to publish on billboards or digital media, they are now required to confine themselves to their official channels, such as websites and other platforms they directly own. Companies will have to provide regulators with information about the conditions for placing their advertising – costs, terms, who exactly undertook to advertise the product.
Thai companies dealing with digital assets will have 30 days to start complying with the new rules.
Earlier, the SEC of Thailand warned investors about the high risks in decentralized finance (DeFi), and also reminded that regulators do not actually control this industry.
Source: Bits
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