- Thai SEC targets ICO issuers with strict rules to protect digital token holders.
Thailand’s Securities and Exchange Commission (SEC) has announced revised initial coin offering (ICO) regulations for the “benefit of digital token holders.”
In a statement on Wednesday, the regulator said the tightened rules aim to facilitate the issuance of digital tokens for sale to the public with adequate and appropriate mechanisms to protect and maintain investor rights.
Thai SEC Targets ICOs with Stringent Rules
According to the official announcement, the SEC has approved various guidelines to achieve this goal, including requiring ICO issuers to enact a “check and balance” mechanism and have measures to prevent and manage conflicts of interest.
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This includes disclosing such mechanisms and measures in the digital token offering information form and specifying issues that the issuer’s board of directors must resolve to ensure the board is jointly responsible for making decisions and disclosing information related to the project.
The SEC also demands that ICO issuers follow specific advertisement rules, such as providing appropriate warnings about investment risks and avoiding “any guiding characteristics or guarantee of returns.”
“In addition, in the case that the issuer does not comply with the ICO advertising guidelines. The SEC can order the issuer to take action so that investors receive information that is complete, correct, true to the truth, and not inaccurate, such as ordering the issuer to correct advertising information,” the regulator stated.
Per the statement, the revised rules took effect on April 16 after featuring in the Royal Gazette.
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