Thailand SEC Proposes New Advertising Rules to Protect Digital Asset Investors

Thailand SEC Moves to Overhaul Advertising Rules for Digital Assets

On 14 January 2025, Thailand's Securities and Exchange Commission (SEC) unveiled a consultation on proposed amendments to advertising standards for digital asset businesses.

This consultation, which runs until 29 January 2025, aims to safeguard investors while fostering responsible advertising practices.

With the digital asset market gaining momentum in Thailand, these reforms seek to address evolving advertising challenges and enhance public trust.

Proposed Advertising Reforms

The SEC’s draft rules focus on refining the communication methods used by digital asset businesses. A key proposal involves revising the size and visibility of warning messages in advertisements.

The requirement for continuous warning messages during promotions is set to be eliminated, making compliance less burdensome while maintaining investor awareness. Social media advertising will also be subjected to stricter criteria to ensure alignment with the revised guidelines.

These changes address concerns that existing rules lack flexibility and adaptability, particularly in online and social media contexts. The SEC aims to ensure that advertising remains both transparent and accessible without compromising its regulatory objectives.

Boosting Investor Awareness

Central to the proposed amendments is the enhancement of investor awareness regarding risks associated with digital asset investments.

Advertisements will be required to include clear and concise warnings, with formats designed to capture attention effectively. This move is intended to counter misleading promotions and provide investors with a more accurate understanding of potential risks.

By enforcing consistent and standardised practices across the industry, the SEC hopes to establish a framework that balances consumer protection with business feasibility.

Ensuring that advertisements meet the proposed standards will promote greater accountability among digital asset businesses and empower investors to make informed decisions.

Industry Implications

The draft rules reflect Thailand’s commitment to fostering a safe and transparent digital asset ecosystem. For businesses, this means adapting to a more structured advertising environment.

Compliance with the new standards will necessitate investments in communication strategies and legal expertise. However, these measures also present an opportunity for companies to build credibility by demonstrating their commitment to ethical practices.

The SEC's proactive approach demonstrates the importance of maintaining transparency and trust in an industry often criticised for its volatility and perceived lack of regulation.