The recent reports stated that the Securities and Exchange Commission (SEC) of Thailand has brought new regulations about advertising for cryptocurrency businesses. It is the result of raising government scrutiny of the sector.
The SEC noted in a recent announcement that the new regulations will properly display investment hazards in marketing and offer a balanced index of expected risk and returns.
“Operators must provide details of advertisements and spending including the use of influencers and bloggers to the SEC along with terms and time frame,” stated SEC, saying that operators had 30 days to become comfortable with the new rules.
India’s rules and regulations for crypto ads
In February 2022, ASCI (Advertising Standards Council of India) kept a set of 12 guidelines regarding the advertisement and promotion of virtual digital assets (VDAs) and services. It included cryptos and non-fungible assets (NFTs) also. All advertisements that have been released or published on or after April 1, 2022, have to have adhered to the guidelines.
Thailand cryptocurrency businesses randomly promote their products on several social media platforms. There are also billboards to promote the sector all over the city of Bangkok.
According to the ASCI standards, cryptocurrency commercials must have added warnings regarding the unsafe atmosphere of the asset class. It should be much like mutual fund advertisements.
Background Information :
Notably, the Prime Minister of India, Narendra Modi, conducted a discussion about the regulatory prospects of cryptocurrencies in November 2021. According to media reports, a significant agreement took place at that time among the members. That aimed to take steps against ads that attempt to mislead the youth using over-promising and non-transparent ads.
Mentionable, In June 2022, a report of ASCI disclosed that over 400 crypto-associated advertisements violated advertising and promotion guidelines for virtual digital assets (VDAs) including guidelines for influencer advertising in the early five months of this year.
According to Manisha Kapoor, CEO of ASCI, “Some influencers discussed crypto confidently without total understanding of it. It creates an impression that it is secure, it’s fine and a cool thing.”
The recent data shows that 419 out of 453 complaints ASCI handled between January and May 2022 required revisions.
Previous Scenario :
Notably, Thailand had restricted the use of cryptocurrencies as a means of payment for goods and services. It was said that the wider use of digital assets would be unsafe for the nation’s financial system and economy.
Business operators along with crypto exchanges, must not offer such payment services. They were banned from providing such services that promote the use of digital assets to pay for goods or services. Was said by the Securities and Exchange Commission. Though, it was expected that the new regulation would not affect trading or investments in digital assets according to the agency.
The restrictions on the use of digital currencies for goods and services exchanges came into force starting April 1. Companies in Southeast Asia’s second-largest economy aimed to have until the end of April to be comfortable with the new rules as the regulator stated. It was said that the hurdles on cryptocurrencies such as Bitcoin for commercial transactions are in series with regulations in Europe, the U.K., South Korea, and Malaysia. Mentionable, countries like Japan, Canada, etc. are very much serious about crypto use among the public. Those countries are not only enthusiastic to use it on personal devices but also it is quite legalized in those countries. They also came up with crypto ATMs. Crypto ATMs are now one of the significant topics over the internet. Along with several uses, they balanced it through regulation and guidelines.