The Securities and Exchange Commission (SEC) of Thailand is taking proactive steps to safeguard crypto investors from misleading advertisements within the ecosystem.
Compliance Reminder: Adherence to Advertising Standards Essential for Crypto Exchanges
In an announcement on April 29, the Thai SEC directed all operational crypto exchanges to refrain from glamorizing crypto investments and ensure strict adherence to prescribed advertising standards.
Concerns Addressed: Special Privileges Offered by Crypto Exchanges Scrutinized
Deputy Secretary-General Anek Yooyuen highlighted the commission’s apprehension regarding crypto exchanges offering enticing privileges to onboard users, emphasizing the importance of regulatory compliance.
Advertisements in the crypto sphere containing false, exaggerated, or misleading information are deemed non-compliant with Thailand’s regulations, as per reports by the Bangkok Post.
Regulatory bodies in prominent crypto markets, such as the United Kingdom and Spain, have also implemented measures to curb losses stemming from crypto investments. Notably, the UK’s Financial Conduct Authority issued numerous alerts for illegal crypto ads in 2023 alone.
The SEC’s advertisement guidelines aim to safeguard investors by ensuring that appropriate warnings about investment risks are included in crypto advertisements and discouraging the onboarding of new users through special promotions.
A warning from Yooyuen underscores that violating the SEC’s advertisement guidelines could result in legal repercussions, emphasizing the importance of compliance with regulatory standards.
Verification Imperative: Upholding Advertising Integrity in the Crypto Space
Thailand’s advertising guidelines mandate businesses and advertisers to substantiate the “facts” presented in their marketing campaigns to avoid contravening local laws.
Recent incidents involving hackers hijacking advertisements on Etherscan to redirect users to phishing sites highlight the vulnerability of advertisement aggregators to large-scale phishing campaigns.
Blockchain investigation firm Scam Sniffer attributes the prevalence of wallet-draining scams to insufficient oversight from advertisement aggregators like Etherscan, underscoring the need for robust filtering mechanisms to mitigate such risks.
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