The Securities and Trade Fee of Thailand, appearing via its authority underneath the Emergency Decree on Digital Asset Companies of 2018, issued Notification No. KorThor 19/2565 Re: Rules, Conditions, and Procedures for Operating a Digital Asset Business (No. 17) on 18 August 2022 which revises the rules applicable to the employment of “introducing broker agents” and cryptocurrency advertising by digital asset business operators in Thailand. A abstract of the foundations, that are efficient 1 September 2022, is as follows:

Introducing Dealer Brokers

The rules outline an “introducing dealer agent” as a “pure individual or juristic one who recommends clients to digital asset operators in relation to the digital asset enterprise, or who performs the duties of soliciting clients to have interaction the providers of the digital asset enterprise operator in relation to the digital asset enterprise, no matter whether or not the act of recommending or soliciting clients is completed for compensation.” The earlier rules allowed digital asset enterprise operators to make use of introducing dealer brokers provided that the digital asset enterprise operator restricted such brokers from partaking in any of the next actions:

  • Granting any monetary quantity in using providers or approval of any account opening functions
  • Making suggestions about shopping for, promoting, or buying and selling digital belongings
  • Receiving orders for purchasing, promoting, or buying and selling digital belongings
  • Managing or safekeeping of digital belongings belonging to clients.

Moreover, the earlier rules required digital asset enterprise operators to oversee introducing dealer brokers to make sure that such brokers acted throughout the above scope of restrictions and solely imparted correct info to clients. The charges of any compensation paid to introducing dealer brokers additionally needed to be clearly outlined and disclosed.

The brand new rules preserve the earlier algorithm intact however permits digital asset enterprise operators to make use of introducing dealer brokers solely on the subject of providers referring to digital tokens. Underneath the framework of the Emergency Decree of 2018, a “digital token” is distinguished from a “cryptocurrency” in {that a} digital token refers to an digital information unit that defines rights to take part in an funding undertaking or the rights to obtain items or providers. Subsequently, a digital token can be equal to both a “safety token” or a “utility token” because the phrases are used within the international ICO parlance. Alternatively, a cryptocurrency is outlined as an digital information unit that merely operates as a medium of change. The excellence between a digital token and a cryptocurrency is a crucial theme recurring within the Thai regulatory framework.

Promoting

A comparability of the rules relevant to cryptocurrency promoting by digital asset enterprise operators underneath the earlier rules (KorThor. 19/2561 and KorThor. 29/2563) and new rules (KorThor. 19/2565) could also be summarized as follows:

Earlier Rules New Rules
 

 

Promoting that was academic or informative relating to digital belongings, funding, providers, and the distribution of prospectuses for the providing of digital tokens had been exempt from rules.

 

 

The distribution of prospectuses for the providing of digital tokens are exempt from rules.

 

Promoting that’s academic or informative relating to digital belongings, funding, and providers, or the dissemination of funding analyses for decision-making functions by buyers that that don’t solicit or induce the investor to have interaction the providers of a digital asset enterprise operator should not be false, exaggerated, opaque, or give rise to misunderstandings. Nevertheless, such ads are in any other case exempt from the general guidelines stipulated within the rules.

 

No restrictions referring to channel or medium of commercial.

 

 

 

Any ads associated to cryptocurrency might solely be marketed via an official channel of the digital asset enterprise operator.
No requirement to inform the SEC of any ads Digital asset enterprise operators should notify the SEC of the main points of ads and the price of such ads as follows:

 

 

·      Notification to be made after-the-fact for any ads within the type of interviews

 

·      For all different kinds, notification to be made 10 days prematurely and should solely be marketed if the SEC doesn’t reply throughout the aforementioned interval.

 

 

Promoting content material was not allowed to point or assure any outcomes from funding in digital belongings except permission was granted from the SEC, or the content material involved previous outcomes or a prediction of future outcomes with acceptable accompanying info and threat components in a way that the investor can be more likely to perceive.

 

 

Promoting content material was required to include threat warnings on the subject of funding in digital belongings, and to point a location the place additional info could possibly be obtained.

 

Any commercial contained in a prospectus for the providing of digital tokens earlier than the date that such prospectus had authorized drive will need to have in any other case been lawful as in accordance with the rules.

 

Similar as with earlier rules.
No restrictions referring to influencers. The brand new rules outline a “individual with a serious position” as an individual who seems or whose likeness seems prominently in an commercial whatever the medium and with out whom the commercial can be thought of incomplete.  Digital asset enterprise operators are required to make sure that individuals with a serious position showing in an commercial should disclose the identification of their hirer and their relationship with their hirer within the commercial.

 

 

Digital asset enterprise operators had been required to oversee their promoting companions to make sure that promoting content material adopted SEC restrictions.

 

 

Digital asset enterprise operators at the moment are required to additionally supervise their group firms and people with an curiosity of their enterprise to not disseminate any commercial which may trigger public confusion.

 

 

Digital asset operators which have current ads earlier than the brand new regulation was issued are given 30 days from 1 September 2022 to adjust to the brand new rules.


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