Thailand's SEC Extends Transitional Period for New rules on Crypto-related Advertising

​Thailand's SEC (Securities and Exchange Commission) has decided to extend the transitional period for new rules on crypto-related advertising, which it is planning to implement "as soon as possible".

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The regulator had proposed the rules in February to address inadequate risk warnings in ads and misleading disclosures, and restrict crypto-related advertising in public areas. The rules are aimed at enhancing investor protection and aligning the requirements in Thailand with other jurisdictions.

In a new notice (Thai), the SEC it will prepare a draft announcement on the new rules, which will be subject to public hearings before the new rules come into force "as soon as possible".

The rules will be applicable to cryptocurrency and digital token trading platforms, brokerages, dealers, and fund managers.

They include a ban on advertising crypto in public spaces to "discourage impulsive buying" by investors. Advertising about the crypto-related services will still be allowed in public areas.

Advertisements will have to include easily noticeable risk warnings in text and font sizes prescribed by the SEC, provide information about the number of customers using the service, and use clear and appropriate language. Exaggerated or misleading disclosures will be explicitly prohibited.

The rules will require digital asset business operators to control and supervise their advertising, include ads by group companies (including non-SEC regulated entities); persons involved in the business (shareholders, directors, executives, etc); and social media influencers.

Introducing broker agents will no longer be allowed to refer customers to cryptocurrency business, though this will still be allowed for digital token businesses.

In the new notice, the SEC said it will shorten the period for digital asset business operators to consider and approve new crypto-related advertising from 15 to 10 days.

For existing crypto-related advertising, the SEC said the transitional provisions are being extended from 15 days to 30 days, to reduce the burden on crypto firms and allow them an "appropriate period of time" to ensure their advertising content aligns with the new rules.

The SEC said digital asset business operators will have to notify the SEC about the costs of advertising.