SEC warns digital asset exchanges on special privileges

The Deputy Secretary-General of the Securities and Exchange Commission (SEC) issued a stern warning to digital asset exchange operators. The caution comes in light of recent findings by the SEC, which reveal that these exchanges often entice the public to invest by offering special privileges, thereby encouraging trades on their platforms.

Anek Yooyuen emphasised that the operations of digital asset exchanges must adhere to established business standards with the primary aim of benefiting investors from those standards. Therefore, all advertising and sales promotions must be in line with specific criteria.

This includes ensuring that the information provided isn’t false, exaggerated, distorted, misleading, or concealed.

The SEC has also set guidelines for promotional campaigns. These should not pressure customers into making hasty decisions about using an exchange’s services or investing in digital assets.

Furthermore, Introducing Broker Agents (IBAs) are directed to only promote digital token services, steering clear of speculation on cryptocurrencies, which are regarded as high-risk assets. Anek explained the reasons for implementing these rules.

“The purpose of these rules is to protect investors so they can invest appropriately based on accepted risks.”

The deputy secretary-general also expressed concern about the potential pitfalls of operators organising sales promotions by offering rewards. This, according to him, could lead to people using the service without fully considering the investment risks, especially in the case of cryptocurrencies.

He stresses that the need for business operators to strictly comply with these rules when organising IBAs, advertising, and sales promotions. Operators must follow all relevant rules and guidelines, or face legal penalties for any violations.

For further information or to report violations, investors can contact the Complaint and Whistleblower Center by calling 1207, or reach out via the Facebook page of the SEC Office or the SEC’s live chat on their official website, reported Bangkok Post.