Thailand's SEC Cautions Crypto Exchanges Against Deceptive Advertising Practices and Glamorizing Investments
Summary:
Thailand's Securities and Exchange Commission (SEC) has issued warnings to crypto exchanges to stop glamorizing crypto investments and abide by authorized advertising guidelines. This move comes amid concerns about exchanges offering special privileges to attract customers. Violation of these guidelines can lead to legal penalties. Global regulators, including those in the UK and Spain, have taken similar steps to protect investors. A warning was also made about the recent phishing scams involving misleading ads on platforms like Etherscan, redirecting users to fake sites.
Thailand's Securities and Exchange Commission (SEC) is moving to prevent crypto investors from being enticed by deceptive ads. On April 29, a directive was issued by the SEC, cautioning active crypto exchanges against romanticizing crypto investments and urging them to uphold approved advertising guidelines. This advisory was led by Deputy Secretary-General Anek Yooyuen, alarmed about crypto exchanges presenting unique privileges to attract new customers. The Bangkok Post reports that any crypto advertisement that includes inaccurate, overstated, distorted, concealing, or deceptive data is a violation of Thai laws.
Global regulators from prominent crypto markets have similarly acted to restrict losses from crypto investments. As an illustration, in 2023, the United Kingdom's Financial Conduct Authority (FCA) issued 450 warnings regarding illegal crypto ads. Also in November 2023, Spain's key securities market regulator, the National Stock Market Commission (CNMV), identified deceptive crypto asset promotions on platform X, stressing companies must conform to national laws.
The SEC prompted crypto exchanges to incorporate adequate risk warnings in their investment products and discouraged onboarding new members using special deals. According to Yooyuen, the SEC's advertisement guidelines serve to safeguard investors against undue danger:
"When service providers arrange sales incentives through rewards to attract clients, this might promote the use of their service without considering investment danger. This is particularly true with cryptocurrencies."
He emphasized that infringing upon these guidelines would culminate in "legal penalties."
Thai commercial communication guidelines necessitate that corporations and advertisers authenticate the "facts" in their marketing strategies or face being in breach of national laws.
Recently, fraudulent actors took control of ads on Etherscan, redirecting viewers to phishing websites created to siphon off crypto assets. Blockchain probing corporation Scam Sniffer attributes this widespread phishing campaign to the inadequate oversight from advertisement consolidators:
"Etherscan combines ads from services like Coinzilla and Persona, where insufficient screening may expose users to phishing attempts."
The deceptive scam entails baiting users to counterfeit sites and inducing them to connect their crypto wallets. Once attached, the dishonest actors can transfer funds to their personal crypto addresses, bypassing user verification or consent.
Published At
4/29/2024 10:54:06 AM
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