Thai Regulator Warns Introducing Brokers, Further Restricts Crypto Ads

The Securities and Exchange Commission (SEC) of Thailand has issued a warning to cryptocurrency exchanges in terms of ads and the ways they organize introducing broker events, saying such activities might violate the rules under Thai SEC supervision.

In a statement, Anek Yooyuen, the Deputy Secretary-General of the regulator, made it clear that they have become aware of certain crypto exchanges frequently attract investment by luring users with exclusive benefits to trade on their venues.

All crypto exchanges must run according to established business guidelines and prioritize helping traders realize potential risks, the regulator further pointed out. To do this, all promotions and ads for their offerings shall adhere to certain standards and may not include any inaccurate, inflated, distorted, misleading or concealing facts.

"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," he said. "The SEC is asking business operators to strictly comply with the rules and be careful when organising IBAs, advertising and sales promotions, following the relevant rules and guidelines. If there is any violation, there will be punishment according to the law."

This comes after a statement made on April 19 by Thai authorities​ that prohibits unauthorized crypto platforms in order to improve law enforcement's efficiency in combating internet crime.