Thailand now joins the expanding number of nations looking to update its 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 contemplating stricter rules on digital assets “to mirror the global market,” according to an article from the Bangkok Post. The failures of FTX, Three Arrows Capital, the TerraUSD, Celsius Network, and the regional exchange, Zipmex, were reportedly cited by the SEC authorities as reasons for their decision.
The regulators expressed concern about recent developments in cryptocurrency advertising, particularly the use of “finfluencers” to spread the message, which might have misguided the public 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, oversight of crypto advertising, and investor protection. It has established a working committee with representatives from both the public and private sectors to evaluate and draught the necessary revisions to current legislation.
It’s interesting to note that the Thai SEC has taken action on crypto advertising rules before. In September, it already compelled market participants to provide consumers with crystal-clear investment cautions.
In the same month, the SEC began a public hearing on its plan to prevent cryptocurrency platforms from offering or supporting services for digital asset registries. The public and traders are intended to be protected by a potential prohibition on all loan and staking services.
