The Securities and Exchange Commission (SEC) has warned digital asset exchange operators to be careful with their ads and the organising of introducing broker agent (IBA) events, saying such activities might violate the rules under SEC supervision.
Deputy secretary-general Anek Yooyuen said in a statement the SEC found digital asset exchanges often draw investments by offering special privileges to the public, enticing investors to trade on their exchanges.
The SEC is reiterating the operations of digital asset exchanges must follow prescribed business standards and focus on benefiting investors.
This means advertising and sales promotions must comply with specified criteria and cannot contain false, exaggerated, distorted, concealing or misleading information.
All ads or promotions must have appropriate warnings about investment risks for investors.
Promotional campaigns must not rush customers to decide to use an exchange's services or invest in digital assets.
The IBAs can only promote digital token services to avoid speculation on cryptocurrencies, which are high-risk assets, noted the regulator.
The purpose of these rules is to protect investors so they can invest appropriately based on accepted risks, Mr Anek said.
"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."
Investors can request more information or report violations at the Complaint and Whistleblower Center by calling 1207, or through the Facebook page of the SEC Office or SEC Live Chat at the SEC website.