Thailand is joining the list of countries attempting to modify their cryptocurrency regulations, following the aftermath of the FTX crash. The Thai Securities And Exchange Commission (SEC) is in the process of creating stricter rules to protect investors, as well as reflect the current global market.
As reported by The Bangkok Post on December 13, the SEC is looking to strengthen the framework of digital assets. The regulatory body pointed to the failures of FTX to make the case for their decision. This includes Three Arrows Capital, TerraUSD, Celsius Network, and the local exchange Zipmex.
The SEC has also expressed worries about crypto marketing techniques, including the use of “finfluencers” to spread the message. This could have resulted in misled investors taking on more risks than necessary, illustrating the need for more supervision. The primary aims of the SEC are investor protection, control of crypto-advertising, prevention of conflicts of interest, and cybersecurity.
The SEC has formed a working group of civil servants and private stakeholders to review and revise existing regulations. This is not the first time the Thai SEC has taken a stance on crypto advertising standards. Back in September, the SEC asked that digital asset companies make it clear to their consumers about the risks of investing.
In the same month, the SEC held a public hearing about its proposal to ban crypto platforms providing or allowing digital asset deposits. The possible ban on lending and sharing services is meant to protect traders as well as the general public.
Zipmex, one of the most influential local platforms, was affected by the crypto company bankruptcies. The platform froze withdrawals in July due to a “combination of circumstances beyond [its] control”. The SEC then accused Zipmex and its co-founder Akalarp Yimwilai of disregarding local laws and referred the case to the police.