Thailand Tightens Crypto Regulations with New Advertising Rules

Thailand Introduces Stricter Crypto Advertising Rules

Thailand's Securities and Exchange Commission (SEC) has implemented new regulations for the crypto industry, focusing on advertising practices. The rules mandate that crypto companies must clearly disclose investment risks in their advertisements and provide a balanced view of potential returns and risks. Additionally, operators are required to submit detailed information about their advertising campaigns, including spending, influencer partnerships, and timelines, to the SEC. Companies have 30 days to comply with these new guidelines.

Targeting Aggressive Crypto Advertising

The regulations aim to curb the aggressive marketing tactics of crypto companies, which have become prevalent in Bangkok and across digital platforms. The SEC emphasized that operators must disclose all advertising details, including the use of influencers and bloggers, to ensure transparency and compliance.

Regulatory Crackdown on Non-Compliance

Thailand has already shown its commitment to enforcing these regulations. The SEC recently fined Bitkub, a major Thailand-based crypto exchange, 8.53 million Baht ($231,670.75) for insider trading. The fine was imposed on Samret Wajanasathian, Bitkub's chief technology officer, for allegedly purchasing 61,107.66 Bitkub coins (KUB) worth 1.99 million Baht.

Balancing Innovation and Risk

Despite recognizing digital assets as investment products, Thai regulators remain cautious due to the high volatility of cryptocurrencies. The Bank of Thailand (BOT) has warned commercial banks against direct involvement in crypto trading, citing risks to the financial system. However, the BOT is actively exploring the development of a central bank digital currency (CBDC), aiming to be among the first central banks to adopt this novel financial infrastructure.

Why These Regulations Matter

The new advertising rules and enforcement actions reflect Thailand's efforts to balance innovation with financial stability. As the crypto market continues to evolve, these regulations highlight the importance of safeguarding investors while fostering a secure and transparent digital asset ecosystem.