Thailand’s SEC tightens rules for cryptocurrency advertising
Regulation of digital assets continues to tighten. On September 1, new restrictions in Thailand related to the advertising of cryptocurrencies came into effect.
Thai cryptocurrency companies are facing new SEC requirements. The Securities and Exchange Commission of Thailand revised the rules for advertising cryptocurrencies and, on September 1, 2022, introduced additional restrictions aimed at protecting traders.
What caused the SEC to take decisive action? Today, Thailand’s digital asset companies offer mostly positive crypto advertising to locals. Messages from various sources encourage people to trade cryptocurrency or use other services of crypto platforms. But the Commission considers such messages to be dangerous for potential investors.
The regulator cites insufficiently convincing warnings about risks (e.g., high volatility), or their complete absence, as the main drawbacks of current cryptocurrency advertising. According to the SEC, this is a direct threat to users.
New requirements for cryptocurrency advertising
The Commission’s primary goal is to have clear advertising content that does not contradict foreign regulations and increases investor protection. What requirements does safe cryptocurrency advertising have to meet?
Reliable information only
The data in the ads must not be exaggerated, distorted, or hidden from users. In particular, this refers to the number of authorized clients using the company’s services.
Detailed reporting
The company must provide the Commission with detailed information about the advertising campaign and expenses. If it cooperates with a blogger or influencer, data on hiring this person is mandatory.
Risk warning
Balanced advertising of cryptocurrencies is one of the key requirements of the regulator. Presentations and commercials should contain not only positive information about profits but also information about possible risks.
Placement on companies’ official channels
Cryptocurrencies will now only be able to advertise digital assets on their own “official channels,” such as websites. But ads for organizations’ services can still be placed in public places and on other platforms. This division should limit the range of people exposed to advertising content and reduce the likelihood of spontaneous decisions.
Stricter requirements for cryptocurrency advertising came into effect on September 1. Companies that have created and published advertising content before then have 30 days to make corrections under the new regulations.
