The Securities and Exchange Commission of Thailand (SEC) has tightened the rules for conducting initial coin offerings (ICO), explaining the change in regulations to protect the interests of crypto asset holders.

According to the updated rules, which came into force on April 16, ICO organizers are required to fully disclose information about the operating mechanism of the issued tokens, as well as disclose issues that the project management brings to the board of directors for discussion. The SEC requires that token issuers advertise their products and services with warnings about the risks of investments and avoid making guarantees of profit.

The agency warned that an issuer that does not comply with ICO advertising rules and does not provide investors with complete and accurate information will become a victim of punitive measures from the SEC. For example, officials will oblige the issuer to correct the information that appears in the advertisement.

The revised rules should simplify the procedure for issuing tokens and protect the rights of their owners, the SEC assures.

At the same time, the SEC of Thailand is seeking to remove restrictions on investments in cryptocurrencies. In March, local authorities allowed management companies to launch private funds to invest in spot Bitcoin ETFs traded on US exchanges. At the beginning of the year, the Thai Ministry of Finance exempted licensed cryptocurrency traders from value added tax.