Thai SEC to Strengthen Crypto Regulations and Protect Investors

A major Thai regulator has stressed the need for stricter regulations on cryptocurrency-related ads.

Following the collapse of the FTX exchange, Thailand has become the latest country to add its name to the ever-expanding list of countries considering whether or not to review their crypto legislation.

In addition, it intends to toughen the rules that regulate the industry and focus on investor protection, which is consistent with the practices of most of these countries.

According to a report published by the Bangkok Post on December 13, Thailand’s Securities and Exchange Commission (SEC) is considering imposing even stricter regulations on digital assets “to mimic the global market.”

In support of such a decision, SEC authorities reportedly highlighted the failures of FTX, Three Arrows Capital, TerraUSD, Celsius Network, and Zipmex, a local exchange. Other examples were also provided.

Authorities have also raised concerns about current developments in cryptocurrency advertising, particularly the use of “finfluencers” to spread the message, which may have been misleading the general public and forcing them to take unnecessary investment risks.

They concluded that the business sector that trades digital assets was “vulnerable” and required some form of oversight.

The SEC has identified the main areas on which it will focus its efforts such as investor protection, regulation of cryptocurrency advertising, conflict of interest prevention, and cybersecurity. These were selected as the main areas on which the agency will focus its attention.

It has established a working group made up of public authorities and business stakeholders in order to assess and draft any necessary adjustments to the rules already in force. The objective of this group is to evaluate and write the necessary adjustments to the regulations that are already in force.

It’s worth noting that this isn’t the first time the Thai SEC has taken action on crypto advertising restrictions, which is an interesting fact to note.

When it came into force in September, it required market players to provide their consumers with clear investment warnings. Since then, they have been complying with this requirement.

In the same month that the hearing took place, the Securities and Exchange Commission (SEC) opened a public hearing on its attempt to restrict cryptocurrency platforms from offering or supporting deposits of digital assets. The subject of the hearing was the SEC’s attempt to restrict cryptocurrency platforms from offering or supporting deposits of digital assets.

Zipmex, which is considered one of the largest exchanges nationwide, was affected by the wave of failures that hit the cryptocurrency business in Thailand.

The Securities and Exchange Commission (SEC) accused Zipmex and its co-founder Akalarp Yimwilai of violating local regulations and sent the issue to local police for further investigation.

Leave a Comment