The Thai Office of the Securities and Exchange Commission “SEC” has published an amendment to the Advertising Regulations of Digital Asset Trading Operators.
The regulations aim to increase the effectiveness of commercial operators’ advertising oversight so that it is clearer and compliant with foreign regulatory rules. This will in turn increase the protection of digital asset traders. The rules take effect September 1, 2022. Advertisers have 30 days to make changes.
Currently, operators of digital assets advertise through various channels, and the SEC has found specific issues related to their digital advertising; like lack of cryptocurrency risk warnings, high volatility or limited warnings – iincluding advertising content that only shows positive information. Therefore, advertisements may persuade people to use the service or trade in cryptocurrencies, disregarding the information and risks accordingly before making decisions that may lead them to loss.
The SEC published an announcement aimed at improving the regulation of advertising and promotion of commercial operators of digital assets – in accordance with the principles of the SEC mentioned during the meetings of February 3, 2022 and May 5, 2022 and received recommendations improvement of the parties concerned. In order to increase the effectiveness, appropriation and readability of the rules governing advertising, in line with foreign regulations and to increase the protection of merchants, the important keys are as follows:
(1) Advertising must not be false, exaggerated, distorted and misrepresented. It must provide information on the number of customers using the service and strictly specify the number of customers who have been authorized to open an account and are ready to use the service.
(2) Commercial operators wishing to provide advertisements are required to provide details of the advertisement and its costs, the details include the employment of those who benefit from the services of bloggers or influencers, in accordance with the regulations, methods, conditions and duration of the SEC. .
(3) Regulations should contain information and warnings about the risks of investing in advertisements. The the format of the presentation must be clear and perceptible. The operator must present complete information useful for investment decisions, in a balanced way – whether there is positive information or an opportunity to gain returns – or negative information or risks associated with investing in assets digital must be displayed in parallel.
(4) Regulation of cryptocurrency advertising can only be carried out through the official channels of operators, in order to prevent cryptocurrency advertising from reaching a wide range of people, which are highly volatile products and prevent impulse purchases, while advertising the operators’ services can still be done in public areas and other channels.
(5) Regulations require economic operators to manage advertisers or advertising providers for economic operators, including group companies, people who intervene in the business and who are in the main roles that appear in the advertisements to comply with the regulations.
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