The Thai SEC is now joining a growing number of countries looking to update their crypto regulations in the wake of the FTX crash. And, like most of these countries, it plans to focus on protecting investors while tightening regulation of the sector.

The Securities and Exchange Commission of Thailand (SEC) is preparing for tighter regulations on digital assets "to reflect the global market," according to a Bangkok Post report published today. on Dec. 13. The failures of FTX, Three Arrows Capital, TerraUSD, Celsius Network, and regional exchange Zipmex were cited by SEC officials to justify their decision.

Thailand's SEC also raised concerns about cryptocurrency advertising
Regulators have expressed concern about recent developments in crypto advertising, particularly the use of "influencers" to spread messages, which could mislead the public. about taking risks with their money. They consider the digital asset market to be "vulnerable" and in need of regulation.

The SEC has identified four key areas to focus its efforts on:
cyber security, conflict of interest prevention, crypto advertising control, and investor protection.

It established a working committee consisting of representatives from the public and private sectors to evaluate and draft necessary amendments to existing regulations.

Interestingly, the Thai SEC has taken action regarding crypto advertising standards. In September, it forced market participants to provide consumers with clear investment warnings. That same month, the SEC launched a public hearing on a plan to ban cryptocurrency platforms from providing or supporting services for digital asset ledgers. The public and traders are protected by a possible ban on all lending and deposit services.

One of the largest local platforms, Zipmex, has been hit by a wave of bankruptcy of crypto companies in Thailand. Withdrawals were halted by the company in July due to "a combination of circumstances beyond [the company's] control". The SEC reported the matter to the police after accusing Zipmex and co-founder Akalarp Yimwilai of violating local laws.

According to the SEC's Fintech Division, these changes are in line with scrutiny by foreign and international regulators.