In an effort to safeguard crypto investors from falling prey to misleading advertisements, the Securities and Exchange Commission (SEC) of Thailand has intensified its scrutiny of promotional campaigns within the crypto sphere.<h2 id="header-0">Broker agent events</h2>On April 29, the Bangkok Post <a href="https://www.bangkokpost.com/business/general/2783690/sec-issues-warning-for-promotions-ads%5C" rel="noopener noreferrer nofollow">reported</a> that the SEC has raised concerns regarding the potential violation of local regulations through introducing broker agent (IBA) events. These events, the SEC clarified, may breach regulations as IBAs are only permitted to promote digital token services to deter speculation on cryptocurrencies, categorized as high-risk assets.IBAs, acting as local conduits for partner digital asset exchanges, typically earn commissions by onboarding clients within a specific market. Such practices are common for exchanges or brokers that don&#39;t directly operate in certain markets.Deputy Secretary-General Anek Yooyuen conveyed the commission&#39;s unease over crypto exchanges offering preferential treatment to onboard users. Yooyuen stated:&#34;When operators organise sales promotions by offering rewards to entice people to use the service, this could encourage use of the service without considering the investment risks. This is especially the case for cryptocurrencies.”<h2 id="header-1">Warning of consequences</h2>He cautioned that failure to adhere to these guidelines would result in “punishment according to the law.”While cryptocurrency exchanges are legal in Thailand, they must secure local approval. Notably, last month, Thailand even greenlit asset management firms to launch private funds, offering Bitcoin exchange-traded funds (ETFs) exclusively to institutional and ultra-high-net-worth investors.Nonetheless, the country recently prohibited the sale of cryptocurrency lending products and mandated that exchanges prominently display risk warning messages.<h2 id="header-2">International regulatory trend</h2>This move by the Thai SEC mirrors actions taken by regulators in other major crypto markets. For instance, the United Kingdom&#39;s Financial Conduct Authority (FCA) issued 450 alerts for illegal crypto ads in 2023 alone.Similarly, Spain’s principal securities market regulator, the National Stock Market Commission, denounced fraudulent crypto asset promotions in November 2023, emphasizing companies’ obligations to adhere to local laws.Thai advertising guidelines mandate businesses and advertisers to substantiate the “facts” presented in their campaigns, failing which could lead to legal repercussions.A recent incident provides a case in point. Hackers <a href="https://x.com/mcbiblets/status/1777090526790967509" rel="noopener noreferrer nofollow">hijacked</a> advertisements on Etherscan, redirecting users to phishing sites aimed at draining crypto wallets. Scam Sniffer, a blockchain investigation firm, attributed the widespread phishing campaign to the inadequate oversight by advertisement aggregators. The company made the following <a href="https://cointelegraph.com/news/thai-regulator-deceptive-crypto-ads-crackdown" rel="noopener noreferrer nofollow">statement</a> on the matter:“Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.”The wallet drainer scam involves enticing users to counterfeit websites and coercing them to link their crypto wallets, enabling scammers to siphon funds into their own wallets without user authentication or consent.This is not the first time that the authorities in Thailand have homed in on crypto-related advertising. In August 2023, the Southeast Asian country’s Ministry of Digital Economy and Society (MDES) outlined that it had engaged with social media firm Meta, owner of Facebook, <a href="https://coinnesslive.page.link/4PD2awEz8TSLuHUv5" rel="noopener noreferrer nofollow">informing</a> it that its response to the proliferation of fraudulent platform ads relative to crypto had been inadequate.

Thai regulator takes action against deceptive crypto ads

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