Thailand Restricts Introducing Brokers On Advertising Cryptos, Allows Digital Token
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The Securities and Exchange Commission in Thailand has taken a proactive measure in overseeing cryptocurrency-related affairs within the country. The SEC has issued warnings to digital asset exchanges, underlining the distinction between cryptocurrencies and digital tokens.
The agency has restricted Introducing brokers, limiting them to promote digital tokens and not cryptocurrencies. The SEC has placed this constraint because of the high potential risk of cryptocurrencies.
The SEC Aims To Safeguard Investors From Possible Crypto Risks
Introducing brokers in Thailand are now forbidden from directly advertising cryptocurrencies. The SEC has revealed that this step aims to safeguard investors from the risks associated with cryptocurrencies and to ensure that local regulations are upheld.
Thailand’s Securities and Exchange Commission has clearly revealed the difference between cryptocurrencies and digital assets. They have classified cryptocurrencies as an asset with higher risk than digital tokens. The agency has also warned Investment Banking Advisors against promoting cryptocurrency services.
Investment Banking Advisors are only allowed to promote digital token services while following the SEC’s requirement. Promoting and endorsing cryptocurrencies by IBAs is disallowed in Thailand. This law aims to lessen speculation and foster a more controlled surrounding in Thailand’s digital asset markets.
The Security and Exchange Commission decision showcases Thailand’s commitment to fostering a regulated framework for Cryptocurrency processes within its region. The nation now prioritizes investor protection.
Adding to the restrictions on promoting cryptocurrencies, the SEC’s caution also addresses the advertising of digital asset exchanges and practices linked with sales promotion.
Exchanges In Thailand Are Legally Required To Provide Investment Risk Warnings
Exchanges are legally required to provide risk warnings in all their advertisements and marketing. This initiative ensures that investors are well equipped with the know-how of the potential dangers of investing in cryptocurrencies.
The SEC has advised that companies should be honest and transparent in their advertising and marketing campaigns. They are expected to do away with twisted, false, suppressed, exaggerated, or deceptive information.
Thailand’s regulatory measures towards cryptocurrencies reveal much about the country’s aim to protect investors’ interests while encouraging innovation.
According to the latest update, the nation has declared promoting cryptocurrency-centric financial products illegal.
The country has allowed asset management firms to launch private funds that offer bitcoin exchange-traded funds (ETFs) for corporate and high-capital investors. It has also permitted cryptocurrency exchanges and installed safety measures to avoid hazards.
Thailand’s SEC aims to blend innovation and investor safeguarding by distinguishing between cryptocurrencies and digital tokens. They are set to reduce digital threats by placing strict rules on promotion and advertising.
The SEC also wants to focuse on protecting the laws surrounding digital assets, thereby creating a responsible cryptocurrency environment as the industry continues to develop.
