The Office of the Securities and Exchange Commission (SEC) in Thailand has announced significant changes to the advertising regulations for digital asset businesses, aimed at promoting responsible advertising practices within the industry. These new guidelines will come into effect on April 16, 2025, marking a pivotal shift in how digital assets are marketed.
The SEC's initiative to revise the advertising rules stems from a need to ensure that businesses engage in responsible advertising while providing investors with accurate information and appropriate risk warnings. The changes are designed to align with the evolving nature of digital asset businesses and to enhance the overall standards of the industry.
In January 2025, the SEC conducted consultations with stakeholders, receiving overwhelming support for the proposed adjustments. As a result, the commission has issued new regulations that focus on a few key areas:
1) The guidelines will improve the clarity and appropriateness of warning messages, ensuring they align with the characteristics and formats of advertising used in the digital asset sector while adequately raising investor awareness.
2) The SEC will eliminate the requirement for continuous display of warning messages during advertisements, citing that the existing principle-based guidelines are sufficient to convey necessary information.
3) A single, comprehensive warning message will be established, which will apply to all cryptocurrency and digital token products. This change reflects the current practices of digital asset businesses that already employ similar warning formats.
4) Advertising on social media platforms will also be updated to align with the revised guidelines, ensuring that all forms of advertising comply with the new framework.
In addition to these advertising changes, the SEC has also updated its operational guidelines for digital token service providers. This is intended to help businesses comply with the regulations effectively and to promote responsible advertising practices.
These new advertising regulations coincide with the broader regulatory landscape in Thailand, where authorities are increasingly focused on ensuring fair trade practices in the digital sector. The Trade Competition Commission (TCC) has also announced updates to its guidelines regarding unfair trade practices in the digital trade sector, which will take effect on May 16, 2025.
The TCC's revised guidelines aim to promote fairness and compliance in digital trade, reflecting a commitment to aligning with international standards. The commission's adjustments include provisions to limit inappropriate content in advertising and ensure that businesses can operate transparently.
Among the significant changes introduced by the TCC are:
1) A restriction on content deemed inappropriate in digital trade advertising, ensuring that businesses can create comprehensive awareness without misleading consumers.
2) The removal of conditions that disadvantage Thai businesses, such as restrictions on using .th or .thai domains.
3) Regulations on currency usage, requiring transactions to be conducted in Thai baht or specified foreign currencies.
4) The establishment of local agencies or personnel to facilitate business operations within Thailand, ensuring compliance with local laws.
5) Additional factors that the TCC may announce in the future to further enhance the regulatory framework.
The TCC's new guidelines are expected to deepen businesses' understanding of digital tokens, advertising, and sales within the digital trade sector. This will enable them to operate in accordance with the principles outlined in the Trade Competition Act.
Moreover, the Thai government has recognized the need to address the evolving landscape of financial crimes associated with digital assets. In response to the rising complexity of financial crimes, the government has enacted two Royal Decrees aimed at combating technology-related crimes and regulating digital asset businesses.
The new Royal Decree on Technology Crime Prevention and Suppression and the Royal Decree on Digital Asset Business Regulation will come into effect on April 13, 2025. These decrees are designed to regulate foreign digital asset businesses that provide services to Thai customers, ensuring compliance with Thai laws.
Under the new regulations, foreign digital asset businesses must obtain permission from Thai authorities if they engage in any promotional activities targeting Thai individuals. This includes requirements such as using the Thai language in their business operations, registering domain names that imply a connection to Thailand, and ensuring compliance with Thai laws.
Additionally, local digital asset businesses will be required to monitor and manage services related to individuals or digital wallets on a blacklist, with penalties for non-compliance extending to the owners of these digital wallets.
The establishment of the Center for Technology Crime Prevention (CTCP) is another critical measure introduced by the government. This center will serve as a hub for reporting, investigating, and exchanging information between public and private sectors regarding technology-related crimes.
Furthermore, the new laws will impose joint liability on private sector entities, such as banks and digital asset businesses, to comply with established standards for technology crime prevention. Failure to adhere to these standards may result in shared liability for damages arising from technology-related crimes.
Overall, the adjustments in Thailand's regulatory framework signify a proactive approach to managing the challenges posed by digital assets and technology-related crimes. As businesses adapt to these new regulations, they will need to prioritize compliance and responsible practices to navigate the evolving landscape effectively.
In conclusion, the SEC and TCC's new guidelines, along with the government's enactment of technology crime laws, reflect a comprehensive effort to enhance the integrity of Thailand's digital asset market while safeguarding consumers and ensuring fair competition.
