Thailand Tightens Regulations on Crypto Advertising Following Crypto Zipmex Bankruptcy

The Securities & Exchange Commission (SEC) of Thailand said on Thursday that it has tightened regulations on cryptocurrency companies’ advertising.

The SEC strengthened regulations after learning that some advertisements don’t mention the hazards associated with cryptocurrencies, while other promos solely provide favourable information.

The SEC informed a number of crypto-related businesses operating in the nation through email on Thursday that advertisements for digital assets must contain obvious warnings about the dangers of cryptocurrency investment.

The regulator’s details of the tighter crypto advertising regulations include:

· Warnings of risks must be clear and easy to notice

· Advertisements must not feature false, misleading or exaggerated claims

· The ads must feature balanced views, mentioning both positive and negative factors

· And crypto firms must limit advertising to official channels like their websites

The government recently revealed its intentions to give ordinary investors extra safeguards. The SEC is now enforcing new advertising regulations after Zipmex, a regionally licenced cryptocurrency exchange, and Zipmex Pte, with regional headquarters in Singapore, stopped accepting withdrawals in July due to a liquidity crisis caused by their exposure to troubled Babel Finance and Celsius Networks.

As the effects of a string of defaults extended deeper throughout the sector, Zipmex, a cryptocurrency exchange with operations in Singapore and Thailand, stopped accepting withdrawals. According to a statement by the Security and Exchange Commission, the local regulator penalised the second-largest digital asset exchange in Thailand $1.92 baht for breaking the rules of professional ethics during the July suspension under the 2018 Royal Decree on Digital Asset Trade.

The Asian platform ran into financial issues as a result of interactions with problematic crypto loan companies Celsius Network Ltd. and Babel Finance. Due to their exposure to Babel of $48 million and Celsius of $5 million, Zipmex experienced financial difficulties.

Efforts to Improve Consumer Protection With its most recent action, Thailand has joined nations like the U.K. and Singapore in attempting to safeguard individual investors following a $2 trillion selloff in the markets for digital assets.

The U.K. government tightened regulations on cryptocurrency advertising in January to make them more consistent with other financial assets. The Financial Conduct Authority (FCA), a financial regulator in the United Kingdom, said that the measures will improve consumer safety while simultaneously fostering innovation.

News Summary:

• Thailand Tightens Regulations on Crypto Advertising Following Crypto Zipmex Bankruptcy
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