Thai SEC to strengthen crypto regulations and protect investors
A top Thai regulator has stressed the need to establish tougher rules for cryptocurrency-related ads.
Following the collapse of the FTX exchange, Thailand has become the latest country to add its name to the ever-growing list of countries mulling over whether or not to overhaul crypto legislation.
In addition, it intends to tighten the rules governing the industry and focus on the protection of investors, which is consistent with the practice in the majority of these countries.
According to a report published by the Bangkok Post on December 13, Thailand’s Securities and Exchange Commission (SEC) is mulling the possibility of introducing even stricter regulations on digital assets “to mimic the global market.”
Reportedly, to support such a decision, SEC authorities highlighted the failures of FTX, Three Arrows Capital, TerraUSD, Celsius Network and Zipmex, a local exchange. Other examples were also given.
Authorities have also indicated their concern about the current advances in cryptocurrency advertising, particularly the use of “fin influencers” to spread the word, which may have misled the general public and forced them to take on unnecessary investment risks.
They came to the conclusion that the business world dealing in digital assets was “vulnerable” and required some form of oversight.
The SEC has identified the main areas where it will concentrate its efforts such as investor protection, regulation of cryptocurrency advertising, avoidance of conflicts of interest and cyber security. These were selected as the main areas where the agency will focus its attention.
It has set up a working group consisting of both public authorities and business actors to evaluate and prepare necessary adjustments to the rules that are already in place. The purpose of this group is to evaluate and prepare necessary adjustments to the rules that are already in place.
It’s worth noting that this isn’t the first time the Thai SEC has taken action regarding crypto advertising restrictions, which is an interesting fact to keep in mind.
When it came into force in September, it required market participants to give their consumers clear warnings about investments. Since then, they have followed this requirement.
In the same month as the hearing, the Securities and Exchange Commission (SEC) opened a public hearing on its attempt to restrict cryptocurrency platforms from offering or backing digital assets. The topic of the hearing was the SEC’s attempt to restrict cryptocurrency platforms from offering or backing digital assets.
Zipmex, which is considered to be one of the largest exchanges at the national level, was affected by the wave of failures that hit the cryptocurrency business in Thailand.
The Securities and Exchange Commission (SEC) has accused Zipmex and its co-founder Akalarp Yimwilai of violating local regulations and has referred the case to the local police for further investigation.
