The Thai Securities and Exchange Commission (SEC) is cracking down on crypto exchanges that use misleading advertisements to attract investors. Deputy Secretary-General Anek Yooyuen of the SEC issued a warning on April 29, reminding exchanges to stick to prescribed advertising standards. He’s concerned about special privileges being offered to new users and false or exaggerated claims in crypto ads.
The Thai Securities and Exchange Commission aims to protect crypto investors from being deceived by false advertising within the cryptocurrency market.
As a researcher studying the Thai Securities and Exchange Commission (SEC), I came across an important announcement made on April 29th. In simple terms, this regulatory body cautioned all active cryptocurrency exchanges against exaggerating or glamorizing crypto investments. They emphasized the necessity of strictly adhering to established advertising guidelines.
As a researcher, I’d like to share that Deputy Secretary-General Anek Yooyuen has expressed concern on behalf of the commission over crypto exchanges granting preferential treatment to new users.
Based on the Bangkok Post report, crypto advertisements that contain untrue, overstated, twisted, hidden, or misleading information are in violation of Thai regulations.
Authorities in significant cryptocurrency markets have implemented comparable actions to mitigate potential losses from crypto investment. The UK’s Financial Conduct Authority (FCA), for instance, sent out over 450 warnings against unlawful crypto advertisements during the year 2023.
Furthermore, in November 2023, the Spanish National Stock Market Commission, which is the primary regulatory body for securities markets in Spain, identified fraudulent promotions of crypto assets on platform X. The commission reminded companies of their legal obligations to adhere to local regulations.
The Securities and Exchange Commission (SEC) advised crypto trading platforms to issue risk disclosures to investors and avoid using enticing offers to bring in new customers.
According to Yooyuen, the SEC’s advertisement guidelines protect investors from unwarranted risks:
“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.”
He warned that violating the said guidelines will attract “punishment according to the law.”
As a thorough analyst, I would advise that in adhering to Thai advertising regulations, it is essential for businesses and advertisers to provide verifiable evidence to support any factual claims made in their marketing efforts. Failure to do so may result in legal consequences.
Recently, hackers gained control over the advertisements on Etherscan and manipulated them to misdirect users towards fraudulent websites intended for draining cryptocurrency wallets.
Scam Sniffer, a company specializing in blockchain investigation, suspects that insufficient supervision by advertising aggregators could be the underlying cause behind the extensive phishing campaign.
“Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.”
As a financial analyst, I’ve come across a deceitful scheme called the “wallet drainer scam.” In simpler terms, this is when con artists create fraudulent websites to entice users into connecting their crypto wallets. Once linked, these criminals can siphon funds directly into their own wallet addresses, bypassing the need for user authentication or approval.
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2024-04-29 11:12