Key Takeaways
- SEC stressed that any crypto ads containing false, exaggerated, or misleading information are against Thailand’s regulatory framework
- SEC’s move comes amidst worries over exchanges luring new users with incentives, risking hasty investment choices.
Thailand’s Securities and Exchange Commission (SEC) has issued a stern warning to crypto exchanges operating in the country, urging them to move away from misleading advertisements targeting potential investors.
Deputy Secretary-General Anek Yooyuen stressed the need for crypto exchanges to adhere to stringent advertising standards, cautioning against tactics that glamorize crypto investments.
“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.”
The SEC’s directive follows concerns about exchanges offering special incentives to entice new users, potentially leading to uninformed investment decisions. The commission stressed that any crypto ads containing false, exaggerated, or misleading information is against Thailand’s regulatory framework and can warrant strict regulatory action.
Thailand’s move to crack down on deceptive advertising aligns with similar actions taken by regulators in other countries. Notably, the United Kingdom’s Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone.
In addition to warning against deceptive practices, the SEC emphasized the importance of including clear warnings about investment risks in crypto advertisements. This will ensure that potential investors are fully informed before making any financial decisions to buy cryptocurrency
The SEC’s recent directive comes amid the recent regulatory developments in Thailand, including measures to block “unauthorized” crypto platforms to enhance law enforcement efforts against online crime.
Following the meet of the Technology Crime Prevention and Suppression Committee, the Thai SEC was ordered to submit information on unauthorized digital asset service providers to the Ministry of Digital Economy and Society to block access to the platforms.
Reportedly, the SEC has considered the impact on users and will give them time to manage their accounts before blocking them. Digital asset businesses operating in Thailand are required to obtain licenses and comply with the rules set forth by the SEC as outlined in the Digital Asset Businesses Decree.
Furthermore, Thailand’s SEC has recently relaxed investment limits for retail investors in certain crypto assets, such as exchange-traded funds (ETFs), signalling a more accommodative approach to crypto investments.
