Thai SEC Gets Stricter On Crypto Promotion

The Securities and Exchange Commission of Thailand, aka Thai SEC, has issued clear guidelines regarding crypto promotions and stated that crypto firms need to issue clear and obvious warnings regarding the risks and volatility tied to the crypto market.

According to Bloomberg, the Thai SEC said in a statement emailed last week that crypto firms should refrain from using false advertisements or misleading information that might sway the decision of investors who do not want to invest in crypto.

A common practice followed by crypto advertisers is promoting these blockchain-based assets as a lucrative form of investment when instead, they are probably the most volatile asset class. In the past few months, the market has lost more than $2 trillion in value.

"Operators must give details of ads and spending including the use of influencers and bloggers to the SEC including terms and time frame," the Thai SEC said.

The securities regulator of Thailand stated that the new rules must be followed and complied with within 30 days of issuance and also, the old advertisements need to be abandoned if they don't follow the guidelines provided by the regulator.

This is an attempt from the regulator to reduce the cases of false advertising practices that often result in investors who do not understand crypto incurring losses.

According to the report, the regulators noted that there were no warnings regarding the asset class in advertisements and as a result, asked promoters to produce balanced views on crypto, mentioning both positive and negative factors. Moreover, the promoters have also been asked to reduce advertising on official channels like their websites.

Interestingly, as per previous reports, India might also put a ban on crypto promotions by celebrities while Spain's National Securities Market Commission put forth a new set of guidelines for such advertisements earlier this year.