Thai regulator cracks down on deceptive crypto ads

Thailand's Securities and Exchange Commission (SEC) wants to ensure that crypto investors are not lured into the ecosystem by misleading advertisements.

On April 29, Thailand's SEC warned all crypto exchanges against selling crypto investments and urged them to comply with mandated disclosure standards.

The warning came from Deputy Secretary-General Anek Youen, who said the commission is concerned about crypto exchanges as they give privileged access to board users.

According to the Bangkok Post, crypto ads that contain false, exaggerated, distorted, hidden or misleading information violate Thai law.

Regulators of key crypto markets have also taken similar measures to minimize losses from crypto investments. For example, the UK's Financial Conduct Authority (FCA) issued 450 warnings for illegal crypto ads in 2023 alone.

In addition, in November 2023, Spain's main securities market regulator, the National Stock Market Commission, called out fraudulent promotions of crypto assets on X and reiterated the companies' obligation to comply with local laws.

The SEC urged crypto exchanges to include appropriate warnings about investment risks and to avoid onboarding new users with special promotions.

According to Yuen, the SEC's disclosure guidelines protect investors from unnecessary risks by:

“When operators organize sales promotions offering rewards for people to use the service, this can encourage the use of the service without considering the investment risks. This is especially the case with cryptocurrencies.”

He warned that violation of the said instructions will attract “punishment according to the law”.

Thailand's advertising guidelines require businesses and advertisers to verify the “facts” stated in their marketing campaigns or risk violating the country's laws.

Related: UK financial regulator bans Binance partner from issuing crypto ads

Hackers recently took over ads on Etherscan and started redirecting users to phishing sites designed to drain crypto wallets.

Blockchain investigative firm ScamSniffer suspects a lack of control from ad aggregators is the root cause of widespread phishing campaigns.

“Etherscan aggregates ads from platforms like Coinzilla and Persona, inadequate filtering can lead to exposure to phishing attempts.”

The wallet scam involves luring users to fake websites and asking them to link their crypto wallets. Once connected, the fraudster can withdraw funds to their private wallet address without user authentication or permission.

Magazine: 7 ICO Options for Blockchain Fundraising: Crypto Airdrops, IDOs and More