A top Thai regulator has emphasized the need of establishing tougher regulations on advertisements that relate to cryptocurrency.
Following the collapse of the FTX exchange, Thailand has become the most recent country to add its name to the ever-expanding list of countries that are mulling over whether or not to revise their crypto legislation.
In addition, it intends to tighten the rules that regulate the industry and put a focus on the protection of investors, which is consistent with the practices of the majority of these countries.
According to a report that was released by the Bangkok Post on December 13, the Securities and Exchange Commission (SEC) of Thailand is mulling over the possibility of imposing even stricter regulations on digital assets “to imitate the worldwide market.”
Reportedly, in order to support such a decision, authorities from the SEC highlighted the failures of FTX, Three Arrows Capital, the TerraUSD, Celsius Network, and Zipmex, a local exchange. Other examples were also provided.
The authorities have also indicated their concern with the current advances in cryptocurrency advertising, most notably the use of “finfluencers” to disseminate the message, which may have been deceptive to the general public and forced them to assume needless investment risks.
They came to the conclusion that the business sector dealing in digital assets was “vulnerable” and required some kind of oversight.
The SEC has identified the major areas in which it will concentrate its efforts as investor protection, regulation of cryptocurrency advertising, the avoidance of conflicts of interest, and cybersecurity. These were selected as the primary areas where the agency will focus its attention.
It has established a working group consisting of both public authorities and business stakeholders in order to evaluate and draft the necessary adjustments to the rules that are already in place. The purpose of this group is to evaluate and draft the necessary adjustments to the rules that are already in place.
It’s worth noting that this isn’t the first time the Thai SEC has taken action over crypto advertising restrictions, which is an interesting fact to keep in mind.
When it went into force in September, it demanded that market players provide their consumers clear warnings about investments. Since then, they have been complying with this requirement.
In the same month that the hearing was held, the Securities and Exchange Commission (SEC) opened a public hearing on its attempt to restrict cryptocurrency platforms from offering or supporting digital asset depositories. The topic of the hearing was the SEC’s attempt to restrict cryptocurrency platforms from offering or supporting digital asset depositories.
Zipmex, which is considered to be one of the most major exchanges on a national level, was impacted by the wave of failures that slammed the cryptocurrency business in Thailand.
The Securities and Exchange Commission (SEC) has accused Zipmex and its co-founder Akalarp Yimwilai of violating local rules and has sent the issue to the local police for further investigation.