The financial market watchdog gave cryptocurrency projects a one-month deadline to adhere to the updated rules and remove illegitimate ads.
Thai SEC (Securities & Exchange Commission) has asked crypto firms operating within the nation to include visible warnings about the dangers of cryptocurrency investments and virtual coins.
SEC’s Crypto Ads Guideline
Last week’s email saw the financial market regulator asking firms to avoid false & misleading info through crypto ads. Also, they should provide advertising information to the securities exchange.
Cryptocurrency companies would have 30 days to comply with the new rules. Moreover, they should discard old adverts that don’t match the guidelines.
The revised SEC cryptocurrency ad rules prohibit misleading, false, and exaggerated assertions. Moreover, the ads should carry visible warnings about associated risks.
The regulator asks crypto firms to restrict adverts to official sites like their websites while presenting a balanced picture, mentioning negative and positive crypto aspects.
Action Against Bitkub & Zipmex
Zipmex Thailand saw a 1.92M baht charge from the SEC on Wednesday. It attracted the charge for suddenly halting trading on the site without adhering to the norms & suspending withdrawals and deposits.
Also, the regulator fined Thailand’s leading cryptocurrency site’s CTO $200K for insider trading. Samret Wajanasathian, the CTO, executed a massive buy of Bitkub’s native tokens (KUB) between September & November last year.
That’s after Samret discovered Siam Commercial Bank was initiating a deal to take over the crypto exchange. Meanwhile, Siam Commercial Bank halted the $500M takeover deal on Sunday, citing Bitkub’s CTO issues.
Stiffer Ad Rules in the UK, Spain
SEC’s stiff crypto ad stance comes as the crypto market endures a massive decline that saw the marketplace losing $2 trillion within six months. Thailand joins the growing list of nations that toughened their cryptocurrency ad policy.
Spain’s NSMC (National Securities Market Commission) introduced new crypto advertising guidelines in January. It said cryptocurrency companies should ensure non-misleading, legit, and understandable advertising language.
Also, they should incorporate warnings associated with trading activities. Meanwhile, UK ad regulators banned Arsenals $AFC fan token advertisement early this month.
Stay tuned for the latest market updates.