Thailand’s SEC Cracks Down on Misleading Crypto Ads
Warns of deceptive crypto ads claiming compliance with Thai SEC regulations. International regulators, the United Kingdom and Spain are also cracking down on misleading crypto promotions. Recent phishing incidents highlight the need for greater vigilance in advertising regulation.
Thailand's Securities and Exchange Commission (SEC) has launched measures to combat misleading advertising in the crypto space, aiming to protect investors from potential losses.
On April 29, Thailand's SEC issued a warning to all crypto exchanges operating in the country, warning against displaying cryptocurrency investments in their advertisements. Deputy Secretary-General Anek Youen emphasized the importance of complying with prescribed disclosure standards so that investors are not misled.
According to Yuuyen, advertisements in the crypto sector should avoid false, exaggerated, distorted or hidden information, as these actions violate Thai laws.
The SEC's action follows concerns about crypto exchanges, as it raises concerns about privacy rights for users, making them aware of investment risks.
Supporting investor protection
The SEC emphasized the importance of including appropriate warnings about investment risks in crypto advertisements and warned that it often encourages individuals to engage in cryptocurrency trading without fully considering the risks associated with using special promotions on new users.
In its recent report, blockchain investigative firm Scam Sniffer also pointed out the vulnerability that comes from not doing enough filtering on ad platforms. According to the report, unfiltered ads lure users to fake websites and link their crypto wallets to phishing attempts, allowing fraudsters to withdraw their funds without permission.
Failure to comply with the SEC's disclosure guidelines may result in legal consequences as violators may face penalties under the law.
Thailand's advertising regulations require businesses and advertisers to verify the facts presented in their marketing campaigns to ensure compliance with the law.
Global crypto regulatory efforts
Thailand's move mirrors similar measures taken by regulators in other key digital asset markets such as the United Kingdom and Spain.
The UK's Financial Conduct Authority (FCA) has issued hundreds of alerts for illegal cryptocurrency ads in 2023 alone, in a concerted effort to crack down on deceptive practices in the industry.
Similarly, Spain's National Stock Market Commission condemned fraudulent crypto asset promotions in November 2023, requiring companies to comply with local laws.
Thailand's SEC has followed in the footsteps of other regulators in regulating the crypto industry, and collaboration between regulators and industry stakeholders is critical to addressing potential risks and ensuring a safe environment for cryptocurrency investors.
