Key Takeaways:
- Global Crypto Ad Scrutiny: Thai SEC’s actions reflect worldwide trend of regulating crypto ads to protect investors.
- Investor Protection Priority: Emphasis on clear warnings aims to prevent crypto investors from being misled.
- Ad Aggregator Oversight Needed: Recent phishing incidents highlight urgency for better oversight of crypto ad platforms.
The Thai Securities and Exchange Commission (SEC) is intensifying efforts to safeguard cryptocurrency investors from deceptive advertising practices.
As of April 29, the SEC has issued warnings to all operational crypto exchanges within the country, urging them not to glamorize the allure of cryptocurrency investments and to strictly adhere to established advertising standards.
UPDATE: THAI SEC WARNS CRYPTO EXCHANGES AGAINST GLAMORIZING INVESTMENTS, REMINDS TO FOLLOW STRICT ADVERTISING STANDARDS
— BSCN Headlines (@BSCNheadlines) April 29, 2024
Deputy Secretary-General Anek Yooyuen expressed the commission’s concern about promotions offered by crypto exchanges that grant special privileges to attract new users.
Such actions, he noted, can lead investors to overlook the inherent risks associated with cryptocurrencies.
Reports from the Bangkok Post highlighted that any crypto advertisements with false, exaggerated, or misleading content are in direct violation of Thailand’s strict advertising regulations.
📢 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
This initiative is in line with actions taken by regulators in other major crypto markets aimed at reducing investment losses.
For instance, in 2023, the UK’s Financial Conduct Authority issued 450 alerts concerning illegal crypto ads.
Similarly, in November 2023, Spain’s National Stock Market Commission took a stand against misleading promotions of crypto assets on social platforms, emphasizing the necessity for companies to comply with local regulations.
The Thai SEC has also reminded exchanges to include clear warnings about investment risks in their promotions and to avoid enticing new users with special offers.
Violations of these guidelines could lead to legal penalties.
Additionally, Thai advertising standards mandate that businesses substantiate any claims made in their marketing materials to avoid legal repercussions.
#Thai regulator cracks down on deceptive crypto ads :
— TOBTC (@_TOBTC) April 29, 2024
Regulators from key crypto markets, including the #UnitedKingdom and #Spain, have also taken similar measures against misleading crypto advertisements to minimize losses from crypto investments.
According to the #Bangkok… pic.twitter.com/DcD3jOdIdM
This concerted crackdown reflects a growing recognition of the need for stringent regulatory measures to protect investors in the volatile cryptocurrency market.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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