Thai SEC Issues Orders To Crypto Firms Over Ads
Thailand is leaving no stone unturned in its oversight of the cryptocurrency industry. Recent debacles and scams in the space have underlined the necessity of proper consumer protection measures. Most recently, the Thailand SEC has reviewed advertising terms and enacted some new rules, including an order for entities to notify consumers of investment risks.
Thai SEC wants businesses to display investment risks in ads
Thailand SEC announced the amendments to the advertising regulations Thursday in an official press release. The SEC highlighted a few rules that digital asset entities must follow to ensure a sanction-free advertisement model. One of the guidelines is that businesses should not include a warning of investment risks while advertising a product.
The SEC mentioned that most crypto entities are fond of leaving information concerning risks during product advertisements. This intentional omission lures investors to patronize the product, with limited knowledge of the risks involved.
The Thailand SEC stated that the risk warning must be unambiguous and easy to notice. In addition to risks, entities should display any negative information about the product. The Thailand authorities have noticed a trend of meticulous concealment of investment risks in crypto promotions. This has led to an understatement of the dangers involved.
The Central Bank of Thailand now has oversight over crypto
Besides the guideline on risk notification, Thailand has also established other advertising rules. One of such rules is that the information in the advertisement should be free of fact distortions. According to the SEC’s press release, there should be no exaggerations or the misrepresentation of facts.
Additionally, the Thailand SEC noted that advertisement should be done on the official channels only. This will help the watchdog to oversee what assets businesses are promoting, and rule out extremely risky ones. Nonetheless, the regulatory body mentioned that entities can advertise their services in any channel of choosing.
Thailand has seen a rapid surge of cryptocurrency ownership in recent times. This is due to global economic problems and the aggressive promotion of digital assets in the country. With this rise in adoption comes the need to properly regulate the sector. In order to do this, Thailand recently gave the country’s Central Bank authority over digital asset oversight. The Central Bank is expected to work in tandem with the SEC to enact efficient rules.