Cryptocurrency advertisements have been a contentious issue in the digital asset industry, with regulators worldwide growing increasingly concerned about the potential for misleading claims and exaggerated promises.
In Thailand, the Securities and Exchange Commission (SEC) has taken a firm stance against deceptive crypto ads, intensifying its oversight and imposing stricter guidelines to protect investors.
TLDR
- The Thai Securities and Exchange Commission (SEC) is cracking down on deceptive and misleading cryptocurrency advertisements.
- Regulators in other countries, such as the UK and Spain, have also taken measures against misleading crypto ads to protect investors.
- The SEC wants crypto exchanges to include appropriate risk warnings and refrain from offering special promotions to onboard new users.
- Crypto ads must prove the facts stated in their marketing campaigns or risk violating Thai laws.
- This move is part of a broader trend toward tighter regulations and oversight of the crypto advertising industry globally.
The Thai SEC’s recent warning to all operating crypto exchanges in the country is a clear signal of its determination to maintain transparency and truthfulness in the crypto advertising landscape.
Deputy Secretary-General Anek Yooyuen expressed concerns about exchanges glamorizing crypto investments or offering special privileges to onboard new users, which could encourage participation without considering the inherent risks.
Thailand’s regulations explicitly prohibit crypto advertisements containing false, exaggerated, distorted, concealing, or misleading information.
The SEC has reminded exchanges to include appropriate warnings about investment risks and to refrain from onboarding new users through special promotions that could obscure the potential downsides of crypto investing.
Yooyuen emphasized the importance of these guidelines in safeguarding investors from unwarranted risks, stating, “When operators organize sales promotions by offering rewards to entice people to use the service, this could encourage the use of the service without considering the investment risks.
This is especially the case for cryptocurrencies.” Violating the advertising guidelines could lead to punishment under Thai law.
📢 The Securities and Exchange Commission (SEC) of Thailand is taking measures to protect crypto investors from misleading advertisements. #Thai #SEC #Cryptohttps://t.co/fnzqQzqQpn
— Cryptonews.com (@cryptonews) April 29, 2024
Thailand is not alone in its efforts to curb misleading crypto advertisements. Regulators from other major crypto markets, such as the United Kingdom and Spain, have also taken similar measures to minimize losses from crypto investments.
The UK’s Financial Conduct Authority (FCA) issued a staggering 450 alerts for illegal crypto ads in 2023 alone, demonstrating a heightened vigilance against deceptive marketing practices.
In Spain, the National Stock Market Commission reiterated companies’ obligation to comply with local laws and called out fraudulent crypto asset promotions on social media platforms like X (formerly Twitter).
These actions underscore a global trend toward tighter regulations and stricter oversight of the crypto advertising industry.
The need for truthful and transparent advertising is further highlighted by recent incidents of hackers exploiting vulnerabilities in advertisement aggregators to redirect users to phishing sites designed to drain crypto wallets.
Blockchain investigating firm Scam Sniffer pointed to the lack of sufficient filtering by advertisement platforms as a root cause of these large-scale phishing campaigns.
unreal, some ads on @etherscan are wallet drainers @Plumferno hope you don't mind me stealing your "no clickly"
url: hxxps://aps.bifi-yleld[.]xyz/
site links to ipjsonapi[.]com pic.twitter.com/YM667m0fEM
— McBiblets (@mcbiblets) April 7, 2024
As the cryptocurrency industry continues to evolve and mature, regulators worldwide are recognizing the importance of establishing a safe and secure investment ecosystem.
The Thai SEC’s intensified oversight on crypto advertising is part of a broader effort to bring the Thai financial market into compliance with international advertising standards.
Crypto exchanges and advertisers in Thailand must now take precautions by providing all relevant information to support any claims made in their marketing campaigns.
This provision carries the notion of transparency and accountability, ensuring that investors make informed decisions based on factual and truthful information.
The tighter regulations implemented globally in the crypto advertising space could point to more stable conditions in the market and increased trust among investors.
This regulatory trend underscores the extraordinary demand for compliance and ethical marketing practices in an increasingly thriving crypto universe.
Under the Thai SEC’s more focused inspection of crypto ads, the foundation for a safer investment ecosystem is already beginning to take shape.
The mandatory provision of honest and factual marketing practices within Thailand serves as an example that other countries may want to follow, thereby raising the overall standards of crypto market regulation across the world.
