Thailand Strengthens Crypto Regulations Following FTX Collapse

Thailand is taking steps to revise its cryptocurrency regulations in response to the recent collapse of FTX, joining a growing list of countries seeking to tighten guidelines in the industry and enhance investor protection.

According to a report from the Bangkok Post published on Dec. 13, the Thai Securities and Exchange Commission (SEC) is preparing to implement stricter regulations on digital assets that aim to align with global market standards. The SEC cited failures of notable entities such as FTX, Three Arrows Capital, TerraUSD, Celsius Network, and local exchange Zipmex as justifications for their upcoming measures.

Representatives from the SEC expressed concerns over recent trends in crypto advertising, specifically the use of “finfluencers” — financial influencers who could mislead audiences regarding investment risks. They labeled the digital asset industry as “vulnerable” and emphasized the need for regulatory oversight.

The SEC highlighted several key areas for focus, including investor protection, control over crypto advertising practices, prevention of conflicts of interest, and enhancing cybersecurity measures. To address these issues, the Thai SEC has formed a working committee that includes both government officials and private sector stakeholders who will assess and prepare relevant amendments to existing regulations.

It is important to note that this isn’t the first time the Thai SEC has acted on issues regarding crypto advertising standards. In September, the SEC mandated market participants to provide clear investment warnings to consumers. They also opened public hearings on the potential prohibition of digital asset depository services, including lending and staking features, aiming to safeguard traders and the general public.

Thailand has seen a wave of bankruptcies among crypto businesses, notably affecting one of the largest local platforms, Zipmex. The firm suspended withdrawals back in July, citing “a combination of circumstances beyond [its] control.” The Thai SEC subsequently accused Zipmex and its co-founder, Akalarp Yimwilai, of non-compliance with local laws and referred the case to the police.

Despite the serious allegations, a Zipmex representative clarified to Cointelegraph that the company is still operational, having filed for bankruptcy protection and received a court-granted extension for its moratorium until December 2, 2023.

Related: Crypto exchange Bitkub targeted by Thai SEC with wash trading claims