thecoinrise.com
The Securities and Exchange Commission of Thailand (SEC Thailand) has ordered cryptocurrency companies operating in the nation to clearly and conspicuously explain the risks of investing in virtual tokens and other forms of cryptocurrency while advertising their products and offerings.
The capital market regulator cautioned businesses to refrain from using inaccurate or misleading information in their advertisements in an email statement from last week. Additionally, the SEC asked them for information regarding advertising terms. Within 30 days, the previous ads that don’t follow the new guidelines should be taken down.
According to the SEC, “Operators must give details of ads and spending including the use of influencers and bloggers to the SEC including terms and time frame.”
The new SEC crypto advertising guidelines ban making false, misleading, or inflated claims and mandate that ads carry clear, readable warnings about risks. A fair view of the digital assets should be presented by addressing both the positive and negative aspects, and cryptocurrency firms have been instructed to restrict their advertising to official platforms like their websites.
On Wednesday, the SEC imposed a fine of 1.92 million baht (about $52,344) on Zipmex Thailand for abruptly terminating trading on its platform, withholding deposits, and blocking withdrawals, as TheCoinRise reported.
The watchdog recently warned local crypto investors to exercise caution while getting involved in the DeFi sector.
Advertising watchdogs around the world
Regulatory bodies around the world are rising to bring clear set of regulations for advertising practices in the crypto industry.
A fresh set of regulations for cryptocurrency marketing was unveiled in January by Spain’s National Securities Market Commission. They were advised to “ensure that the advertising of the products offers true, understandable, and non-misleading content, and includes a prominent warning of the related risks,” according to the document.
They were advised to “ensure that the advertising of the products offers true, understandable, and non-misleading content, and includes a prominent warning of the related risks,” according to the document.
Moreover, in February, Indian authorities also shared a fresh set of guidelines for crypto marketing in its efforts to safeguard investors from getting trapped by misleading ads.
Recently, two advertisements for Arsenal’s fan token $AFC were banned by the UK’s advertising authority for failing to “illustrate the hazards of crypto investments” and trivializing serious and potentially expensive financial decisions.