Thai SEC Urges Crypto Exchanges to Adhere to Advertising Rules, Discourage Misleading Promotions
The Securities and Exchange Commission (SEC) of Thailand is taking steps to protect crypto investors by cracking down on misleading advertisements. In a recent announcement, the Thai SEC warned all crypto exchanges operating in the country to refrain from glamorizing crypto investments and to comply with advertising standards. The regulator expressed concern over exchanges offering special privileges to attract users, stating that advertisements containing false, exaggerated, distorted, or misleading information are in violation of Thailand’s regulations.
This move by the Thai SEC is in line with actions taken by regulators in other major crypto markets. For example, the UK’s Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone. Similarly, Spain’s National Stock Market Commission (CNMV) called out fraudulent crypto asset promotions and emphasized the importance of complying with local laws.
The SEC reminded crypto exchanges to include appropriate warnings about investment risks in their advertisements and cautioned against using special promotions to onboard new users. According to Deputy Secretary-General Anek Yooyuen, the SEC’s guidelines aim to protect investors from unnecessary risks. He highlighted the potential problems of enticing users with rewards without considering investment risks, especially in the case of cryptocurrencies. Violations of the guidelines will result in legal punishment.
Thai advertising guidelines require businesses and advertisers to substantiate the “facts” stated in their marketing campaigns, ensuring compliance with the country’s laws.
In a separate incident, hackers recently took over advertisements on Etherscan, a popular blockchain explorer, redirecting users to phishing sites designed to steal crypto wallets. The lack of oversight from advertisement aggregators was cited as a contributing factor to this large-scale phishing campaign. Blockchain investigation firm Scam Sniffer pointed out that insufficient filtering on platforms like Coinzilla and Persona, from where Etherscan aggregates ads, could expose users to phishing attempts.
The wallet drainer scam involves tricking users into visiting fake websites and linking their crypto wallets, allowing scammers to withdraw funds without user authentication or permission. Similar incidents have also occurred on Google Ads, where malicious crypto websites were promoted, putting users at risk of falling for phishing scams.
In response, Google has filed a lawsuit against individuals from China for deceiving people with fake crypto investments through the Google Play store. The company has deactivated 87 fraudulent apps associated with the individuals over the past four years.
It is crucial for investors and users to exercise caution and stay informed about potential risks in the crypto market.
