May 23, 2024
Latest Cryptocurrency News

Thai SEC Warns Against Misleading Crypto Advertisements

The Securities and Exchange Commission (SEC) of Thailand has issued a stern warning to crypto exchanges operating within the country against the use of misleading advertisements to attract investors.

This move aims to safeguard investors from falling prey to deceptive marketing tactics within the crypto ecosystem.

Concerns Over Glamorizing Investments

Deputy Secretary-General Anek Yooyuen emphasized the commission’s concerns regarding crypto exchanges enticing users with special privileges. He underscored the importance of adhering to prescribed advertising standards to prevent the dissemination of false or exaggerated information.

The Thai SEC’s warning follows a trend observed in other major crypto markets, where regulators are ramping up efforts to curb illicit practices in the industry.

For instance, the United Kingdom Financial Conduct Authority (FCA) flagged hundreds of illegal crypto ads in 2023 alone. This highlighted the global concern over deceptive marketing tactics within the crypto space.

Protecting Investors From Misleading Crypto Ads

In light of the risks associated with crypto investments, the SEC reiterated the importance of including appropriate warnings about investment risks in advertisements.

Yooyuen emphasized that failure to comply with the advertising guidelines would result in legal consequences for violators.

The SEC’s advertising guidelines mandate businesses and advertisers to substantiate the facts stated in their marketing campaigns. Failing to do so will result in potential violations of local laws. This move aligns with the regulatory efforts to uphold transparency and protect investors from unwarranted risks in the crypto market.

Rising Threat of Phishing Scams

Amidst concerns over misleading advertisements, recent incidents of hackers hijacking advertisements on platforms like Etherscan have raised alarms.

Hackers exploited insufficient filtering on advertisement aggregators to redirect users to phishing sites designed to drain crypto wallets.

Blockchain investigating firm Scam Sniffer identified the lack of oversight from advertisement aggregators as a contributing factor to the proliferation of phishing campaigns.

The scam involves luring users to fake websites and prompting them to link their crypto wallets. This enables scammers to siphon funds without user authentication.

In conclusion, the Thai SEC’s warning underscores the importance of vigilance and regulatory compliance in the face of evolving threats in the crypto landscape. As authorities intensify crackdown on deceptive practices; investors are advised caution and thorough due diligence before engaging in crypto investments.

Image from Needpix.com

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