The Thai SEC now joins the growing number of nations looking to update their cryptocurrency regulations in the wake of the FTX debacle. And, like the majority of these nations, it plans to concentrate on protecting investors while tightening regulations for the sector.
The Thai Securities and Exchange Commission (SEC) is making preparations for stricter regulations on digital assets “to mirror the global market,” according to a report from the Bangkok Post that was released on December 13. The failures of FTX, Three Arrows Capital, the TerraUSD, Celsius Network, and the regional exchange, Zipmex, were reportedly cited by the SEC representatives as justification for their decision.
Thai SEC also raised concerns about crypto advertising
The regulators expressed concern about recent developments in cryptocurrency advertising, particularly the use of “finfluencers” to spread the message, which might have misled the audience into taking risks with their money. They considered the market for digital assets to be “vulnerable” and in need of regulation.
The SEC identified four key areas for its efforts to be concentrated on: cybersecurity, conflict of interest prevention, control over crypto advertising, and investor protection.
It has established a working committee with representatives from both the public and private sectors to evaluate and draft the necessary amendments to current regulations.
It’s interesting to note that the Thai SEC has taken action on crypto advertising standards before. In September, it already compelled market participants to provide consumers with crystal-clear investment warnings.
In the same month, the SEC began a public hearing on its plan to forbid cryptocurrency platforms from offering or supporting services for digital asset registries. The public and traders are intended to be protected by a potential ban on all lending and staking services.
One of the biggest local platforms, Zipmex, was hit by the wave of bankruptcies experienced by cryptocurrency businesses in Thailand. Withdrawals were halted by the company in July due to a “combination of circumstances beyond [its] control.” The SEC reported the matter to the police after accusing Zipmex and its co-founder Akalarp Yimwilai of breaking local laws.
According to the SEC’s Fintech Department, these changes are in line with the oversight of foreign and international regulators.