- The Thai SEC has warned against misleading crypto advertisements while urging compliance with regulations.
- Global regulators, the UK and Spain are also cracking down on misleading crypto promotions.
- Recent phishing incidents highlight the need for increased vigilance in ad oversight.
Thailand’s Securities and Exchange Commission (SEC) has introduced measures to combat misleading advertisements in the crypto sector with the aim of protecting investors from potential losses.
On April 29, the Thai SEC issued a warning to all crypto exchanges operating in the country, cautioning them against the glamorization of cryptocurrency investments in their advertisements. Deputy Secretary General Anek Yaoyuan stressed the importance of adhering to set advertising standards to protect investors from being misled.
According to Yoyuan, advertisements in the crypto sector should avoid false, exaggerated, distorted or concealed information, as such practices violate Thailand’s regulations.
SEC’s move comes after concerns crypto exchange Enticing users with special privileges, potentially leading them to overlook investment risks.
Maintaining investor protection
The SEC stressed the importance of including appropriate warnings about investment risks in crypto advertisements and cautioned against using special promotions to attract new users that often attract individuals without fully considering the associated risks. Encourage to engage in cryptocurrency transactions.
Blockchain investigation firm scam sniffer in its recent report It also pointed to vulnerabilities arising from inadequate filtering on advertising platforms. According to the report, Unfiltered ads expose phishing attempts by luring users to fake websites and tricking them into linking their crypto wallets, allowing scammers to withdraw funds without authorization.
Failure to comply with the SEC’s advertising guidelines may result in legal consequences, as violators will face punishment as per the law.
Thai advertising regulations oblige businesses and advertisers to certify the facts presented in their marketing campaigns to ensure compliance with the law.
Global crypto regulatory efforts
Thailand’s action mirrors similar steps taken by regulators in other major digital asset markets such as the United Kingdom and Spain.
The United Kingdom’s Financial Conduct Authority (FCA) issued hundreds of alerts for illegal cryptocurrency advertisements in 2023 alone, demonstrating a concerted effort to curb deceptive practices in the industry.
Similarly, Spain’s National Stock Market Commission condemned fraudulent crypto asset promotions in November 2023, underscoring the obligation of companies to comply with local laws.
As the Thailand SEC follows in the footsteps of other regulators in regulating the crypto industry, collaboration between regulators and industry stakeholders is vital to address emerging threats and ensure a safe environment for cryptocurrency investors.
Want personalized crypto trades? DM me! 👉@bigbullcrypto_org
