Thai Regulator Warns Bitcoin Exchanges Against Misleading Advertising

The Securities and Exchange Commission (SEC) of Thailand has reminded active cryptocurrency exchanges of the need to adhere to established advertising standards, according to the Bangkok Post.

The regulator is concerned about the “special privileges” platforms offer to registered users. Authorities believe marketing campaigns should not push clients towards using the exchange’s services or investing in digital assets.

According to the SEC, cryptocurrency advertisements in the country violate rules if they contain false, exaggerated, distorted, concealed, or misleading information.

The commission reminded market participants of the necessity to include disclaimers in advertisements and to “refrain from attracting new users through special promotions.”

“When operators [of platforms] organize promotions offering rewards to encourage people to use the service, it may stimulate service use without considering investment risks. This is especially true for cryptocurrencies,” noted the SEC.

They warned that rule violations entail “punishment according to the law.”

In April, Thai authorities decided to block unauthorized cryptocurrency platforms.