The Thai SEC Will Tighten Crypto Rules And Focus On Protecting Investors

Thailand’s top government official says cryptocurrency-related ads must be more closely monitored.

In the wake of the FTX crash, Thailand has joined the growing list of countries that want to change their crypto regulations. And, like most of these countries, it intends to make the industry rules stricter and emphasise protecting investors.

According to a Bangkok Post report on December 13, the Thai Securities and Exchange Commission (SEC) is preparing stricter rules for digital assets “to mirror the global market.” Representatives from the SEC are said to have used the failures of FTX, Three Arrows Capital, TerraUSD, Celsius Network, and Zipmex, a local exchange, to back up their decision.

The regulators were also worried about recent trends in crypto advertising, such as using “influencers” to spread the word, which could have led people to invest in risky things. They thought the digital asset business was “vulnerable” and needed to be watched.

The SEC said that protecting investors, keeping crypto advertising under control, avoiding conflicts of interest, and improving cybersecurity are essential things it needs to work on. It has set up a working committee of government officials and private stakeholders to examine current rules and make the necessary changes.

Interestingly, this isn’t the first time the Thai SEC has done something about advertising rules for crypto. It has already made the market players warn consumers about investments in a clear way back in September.

The same month, the SEC held a public hearing on its plan to stop crypto platforms from offering or supporting services for storing digital assets. The possible ban on staking and lending services is meant to protect traders and the general public.

One of the biggest platforms in Thailand, Zipmex, was hit by the wave of crypto businesses that went out of business. In July, the company stopped letting people withdraw money, saying it was because of “a combination of circumstances beyond [its] control.” The SEC noted that Zipmex and its co-founder, Akalarp Yimwilai, broke local laws and turned the case over to the police.