Thailand Tightens Crypto Company Ads Because They Are Considered Too Riskful For Investors

Crypto ads in Thailand must now be clearer and more detailed (photo: twitter @BitkubAcademy)

JAKARTA Many crypto exchange companies are considered very expansive in promoting their business. But these promotions are sometimes unreasonable and even too risky for investors.

In response, the Thailand Securities and Exchange Commission (SEC) has rolled out new rules on advertising for cryptocurrency companies after the industry gained tighter scrutiny from authorities.

According to the SEC on Thursday, September 1, the new rules include clearly demonstrating investment risks in advertising and providing a balanced view on potential risks and returns. Information on the terms of advertising displayed by crypto companies must also be given to regulators.

"Operators should provide details of advertising and expenses including the use of influencers and bloggers to the SEC including terms and timeframes," the SEC said. They added that the operator had 30 days to comply with the new rules.

Crypto companies in Thailand advertise a lot on digital media and advertising boards promoting the industry can also be seen across the capital Bangkok.

Thai regulators have in recent days also fined crypto companies, during the operations of many companies hit by the global slump in the value of digital currencies.

Samret Botanasatian, an executive of a local operator, Bitkub, was fined 8.5 million baht (Rp 3.4 billion) this week, therefore there is insider trading. Samret said he would appeal the decision.

Last month, Thailand's fourth largest lending agency by asset, SCBX Pcl, canceled its 500 million-dollar Bitkub acquisition due to regulatory issues.

Its rival operator, Asia-focused Zipmex, was fined 1.92 million baht last Wednesday for suspending withdrawals in late July.

The startup said in a Facebook post that it was "evaluating carefully the provisions of the sentence with our legal advisers."