Thailand has joined the list of countries attempting to reform their cryptocurrency laws in the aftermath of the FTX scandal.
Thailand’s Securities and Exchange Commission (SEC) intends to impose stricter regulations on digital assets similar to those in the global market to further protect investors.
According to the report, this year, the market for digital assets has been hurt by several incidents that have weakened consumer trust in the sector, “its players, and its regulations,” highlighting the failure of the Terra blockchain’s TerraUSD (UST) stablecoin and Singapore-based cryptocurrency hedge fund Three Arrows Capital, as well as the collapse of the Luna cryptocurrency network.
The bankruptcy of the Celsius Network had a negative impact on Thai investors who used the Zipmex platform. Several Asian investors were also impacted when FTX collapsed in November.
The regulators also expressed concern regarding crypto advertising, which was discovered to contain information that could mislead investors and increase their investment risks.
According to the claims, some digital asset service companies have spent money on advertising by enlisting celebrities to attract investors without adequately disclosing the necessary information. The regulators contend that the incidents show the industry’s vulnerability and lack of adequate oversight.
The SEC of Thailand has established a working team to investigate the cryptocurrency market. Representatives from relevant government and commercial sector organizations will also be included. They will be in charge of proposing changes to the regulations to reflect the changing situation.
The Thailand Securities and Exchange Commission (SEC) hopes to address cryptocurrency advertising and product marketing, particularly those involving influencers and prominent figures. Similar events occurred in the United States last month when some well-known athletes and celebrities were sued for being paid to endorse FTX.
The report also stated:
“The SEC is monitoring new potential risks and has vowed to improve regulation to be more effective in supervising the industry and enhancing investor protection in areas such as protecting investors’ assets, governing advertisements and product promotions, preventing conflicts of interest, and strengthening cybersecurity.”
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