As a researcher with a background in finance and regulatory compliance, I strongly support the SEC’s warning to digital asset platforms regarding crypto promotion and misleading advertisements. The rise of cryptocurrencies has brought about both innovation and risks, and it is crucial that regulators take steps to protect investors from potential scams and fraudulent activities.
Thailand’s Securities and Exchange Commission (SEC) issued a caution to digital asset platforms regarding cryptocurrency promotions and misleading advertisements. Local media outlets indicate that these platforms should exercise caution with their advertising efforts, prioritizing the interests of investors.
The warning is a result of the regulator’s determined actions to tightly control the cryptocurrency market in response to increasing worries about fraudulent activities in this sphere.
Exchange’s Ads Required To Comply With Regulatory Rules
As a researcher, I came across an article in The Bangkok Post on Monday, which reported on the Securities and Exchange Commission (SEC) taking action against the crypto industry in Thailand. According to the piece, the SEC has advised digital asset exchanges to exercise caution in their operations.
The Securities and Exchange Commission (SEC) has issued a cautionary notice to advertising platforms and Introducing Broker Agent (IBA) event organizers. Their actions could potentially breach SEC regulations.
As a crypto exchange analyst, I believe it’s essential for us to adhere to the regulatory standards set by the country in order to provide legitimate services and prioritize the interests of our investors. In terms of marketing and promotional efforts, we must ensure that all information is truthful, free from exaggeration or distortion, and transparent, avoiding any intentionally misleading or concealing details.
As a researcher studying the crypto market, I would add that it is essential for advertisements and promotions to clearly communicate the risks associated with investing in cryptocurrencies to potential investors. Additionally, regulatory bodies mandate that promotional campaigns avoid pressuring customers into making hasty decisions about using a digital asset exchange.
As a crypto investor, I understand that the Securities and Exchange Commission (SEC) has made it clear that Investment Companies can only provide digital token services with caution. To avoid engaging in excessive speculation on cryptocurrencies, which carry significant risk, we must follow these guidelines.
Anek Yooyuen, the deputy secretary-general of the SEC, pointed out that trading platforms frequently attract investment by granting unique benefits to the general public. Consequently, these incentives typically lure investors into conducting transactions on these exchanges.
As a researcher studying consumer behavior in the context of financial services, I’ve observed that operators often design sales promotions by providing rewards to attract users. The allure of these incentives can lead people to utilize the service without giving sufficient thought to potential investment risks, particularly in the case of cryptocurrencies.
Crypto Ads, A Global Regulatory Concern
Crypto advertising regulation has been a source of intense debate amongst regulatory bodies. In the year 2022, Spain’s National Securities Market Commission (CNMV) introduced a fresh regulatory scheme to address this issue.
As a marketing analyst, I would explain it this way: Under the new regulations, I am required to provide the Spanish regulatory body with details about my digital advertising campaigns, including their content, at least ten days prior to implementation.
In a manner akin to Thailand’s regulatory guidelines, warning labels were necessary for crypto ads. The new regulations extended to influencer-driven and celebrity-endorsed promotions as well. The UK’s Financial Conduct Authority (FCA) enforced stricter rules for cryptocurrency advertisements in 2023.
Campaigns and advertisements for promotional purposes have unfortunately given rise to instances of deceit and fraudulent activity. An incident from February involving South Korean influencers and celebrities brought such concerns to light, as they were accused of endorsing the blockchain sports platform Winnerz without disclosing their connections.
The most notable crypto advertising scandal centered around EthereumMax (EMAX) in 2022. Celebrities and athletes endorsed the project on their social media channels without disclosing the financial arrangements. Among them was Kim Kardashian, who received a payment of $250,000 to promote EMAX to her massive following of over 320 million people.
The SEC, the American regulatory body, accused the TV personality of violating the prohibition against illegal cryptocurrency hype, leading to a fine of $1.2 million. In addition, the socialite consented to cease all crypto promotions for a period of three years and collaborate with the SEC’s ongoing investigation.
During the occurrence of the event, Gary Gensler, then-chairman of the Securities and Exchange Commission (SEC), emphasized to exchanges the importance of adhering to regulatory guidelines when making promotions.
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2024-04-30 07:42