Thai Regulator Tightens Crypto-related Ad Rules

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Thai Regulator Tightens Crypto-related Ad Rules. The Securities and Exchange Commission of Thailand has launched new rules on advertising for cryptocurrency companies after the industry came under stricter scrutiny from the authorities.

“The new rules require crypto companies to demonstrate the risks of crypto investments in advertising and provide a balanced view of the potential risks and benefits,” the agency said in an announcement quoted by Channel News Asia, Wednesday (21/9/2022).

In addition, companies must provide the agency with details of advertising and spending including use of influencers and bloggers including terms and timeframes.

Read Also: SEC Indicts Employees And Founders Of Crypto Platforms Regarding Ponzi Scheme Cases Of USD 100 Million

The crypto company has 30 days to fulfill all of these requirements in its published ad.

Crypto companies in Thailand advertise heavily in digital media and billboards promoting the industry can also be seen throughout the capital city of Bangkok. Thai regulators in recent days have also fined crypto companies, with the operations of many companies hit by a global slump in the value of digital currencies.

An executive from a local operator, Bitkub Samret Wajanasathian, was fined 8.5 million USD 231,670 this week for insider trading. Samret said he would appeal the decision.

Rival crypto firm, Asia-focused Zipmex, was fined 1.92 million Thai baht on Wednesday for suspending withdrawals at the end of July.

Disclaimer: Every investment decision is in the hands of the reader. Study and analyze before buying and selling Crypto. Liputan6.com is not responsible for profits and losses arising from investment decisions.

Read Also: Crypto Market Falls After US Inflation Data Release

Previously, more than 50 cryptocurrency companies had been sent enforcement notices by the UK’s advertising watchdog as part of a regulatory crackdown on promotions in the crypto industry.

Thai Regulator Tightens Crypto-related Ad Rules. The UK’s Advertising Standards Authority (ASA) said it had told companies to review their ads and make sure they were complying with the rules.

The notification also provides a warning that crypto companies that do not comply and do not modify advertisements that have been broadcast until May 2, 2022, will be subject to sanctions.

In its notification to the company, the regulator provided guidance stating that advertisers should make clear digital assets are not regulated in the UK. Companies should not urge people to buy bitcoin or other cryptocurrencies in their advertisements.

The ASA did not name the companies it had contacted, but said it had previously banned ads from crypto platforms such as Coinbased and pizza chain Papa John’s over concerns they were misleading consumers.

Read Also: Ministry Of Finance And Central Bank Of Russia Asked To Agree On Digital Asset Development

“This is a priority issue of red alert for us and we have recently banned some crypto ads for misleading consumers and for being socially irresponsible,” the ASA said in a statement. .

It comes as the UK takes a tougher line on the crypto industry. The government in January said it would bring crypto advertising under the same rules for financial promotion, a move that would require advertisers in the industry to be authorized by regulators.

Global Digital Finance, an industry body that includes crypto exchanges Coinbase and Bitfinex, said it had sent a letter to UK Treasury Secretary Rishi Sunak expressing some concerns.

“Instead of trying to expand the scope of existing laws, hampering markets and attracting unintended consequences, a new bespoke regime should be implemented,” Global Digital Finance director of governance and regulatory affairs Lavan Thasarathakumar wrote in the letter.

Read Also: Hacking Rises, FBI Warns Crypto Investors About DeFi Platform

Earlier, UK Treasury Rishi Sunak had announced it would regulate several cryptocurrencies as part of a broader plan to make the UK a hub for digital payments companies.

The so-called Stablecoins will become a recognized form of payment to give people confidence in using digital currencies.

As is known, Stablecoins are specifically designed to have a stable value associated with other assets such as currencies or traditional assets such as gold.

Sunak also said it plans to consult on a much broader crypto regulation later this year, without saying what type of crypto.

“We want to see the future of cryptocurrency businesses and the jobs they can create here in the UK. By regulating effectively we can give them the trust they need,” Sunak said.

To date, the UK Treasury, has not confirmed which stablecoins will be regulated. To date, several well-known stablecoins include Tether and Binance USD.

Read Also: Ethereum Founder Vitalik Buterin Says Bitcoin Security Will Be Completely From Fees

Thai Regulator Tightens Crypto-related Ad Rules. Stablecoins are currently used in the United States to facilitate the trading, lending, or lending of other digital assets.

However, they are not without controversy. Tether, a Hong Kong-based company, has faced questions about its business practices and was fined $41 million in 2021 by the US Commodity Futures Trading Commission for allegedly misstating its asset reserves.

Sunak said that setting up Stablecoins will ensure that users or the public can use Stablecoins safely.

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