Thailand could ban Facebook over cryptocurrency ads

abdelaziz Fathi

Thailand has warned to ban Facebook if the social network doesn’t get its act together regarding alleged investment and cryptocurrency scam ads popping up on its platform.

The Ministry of Digital Economy and Society (MDES) has made it clear that unless Facebook takes proper steps to address these issues, they’ll be heading to court to seek an order to shut down the social media giant. According to MDES, more than 200,000 people have fallen victim to Facebook ads promoting various crypto scams and fake investment opportunities. These fraudulent ads even posed as government agencies like the nation’s Securities and Exchange Commission.

These scams were all about luring people into crypto investment and trading schemes, with some ads using images of celebrities and well-known financial figures. The tactics included promising unrealistically high daily returns, going as high as 30%.

Chaiwut Thanakamanusorn, the Minister of MDES, mentioned that they’ve been in talks with Facebook (now known as Meta) and even sent them a letter addressing the issue. But according to the ministry, Facebook hasn’t been screening advertisers and tackling the problem at its root.

“It has been a most critical issue that many big corporates and famous people had their names and images impersonated to create fake content to lure people for investment,” Thanakamanusorn said.

He warned that if Meta does not take appropriate action within seven days, Thailand’s authorities could potentially shut down the platform in the country, which is Southeast Asia’s second-largest economy.

In addition, the Thai Police are also gearing up to file lawsuits against the scammers operating those fraudulent crypto ads. The legal actions will span both criminal and civil courts, signaling a multi-pronged approach to tackle the issue and bring those behind the scams to justice.

The Thai SEC  mandates a trading risks disclaimer that must be prominently displayed to retail customers to keep them aware of the potential risks associated with engaging in cryptocurrency trading. It reads: “Cryptocurrencies are high risk. Please study and understand the risks of cryptocurrencies thoroughly, because you may lose your entire investment.”

As part of the new regulations, exchange operators in Thailand are required to ensure that users acknowledge the risks associated with crypto trading before they can use their services. Furthermore, the SEC has introduced a mandatory investor suitability assessment to determine the appropriate trading limits for users. These assessments will take into consideration factors such as the financial capability and risk tolerance of individuals.

Read this next

Digital Assets

Global clamp down on crypto tax evasion to go live in 2027

“As jurisdictions that play host to active crypto markets, we therefore intend to work towards swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027.”

Digital Assets

Ripple and Archax team up for tokenization with XRPL

“There is clear real-world utility in use cases like RWA tokenization for the operational efficiency, access to liquid markets and transparency inherent to crypto, and Archax has already tokenized assets such as equities, debt instruments and money market funds. Financial institutions are now understanding this and we are excited to play our part in helping them to embrace the technology by bringing their assets onto the XRPL.”

Interviews

Acuity Trading at iFX EXPO LATAM: Andrew Lane on the rise of AI and prop trading

At iFX EXPO LATAM 2024, Acuity Trading’s Andrew Lane discussed the successful rollout of their Research Terminal, the impact of AI on the trading industry, competition from AI-powered solutions, emerging market trends in Latin America, and the rise of prop trading, while addressing regulatory challenges and innovations.

blockdag

Top Crypto Highlights for Q2 2024: BlockDAG’s Astonishing 1120% Growth Compared to Solana’s Surge and Toncoin’s Market Triumph

Explore the latest highlights in cryptocurrency: Solana’s recovery, Toncoin’s record levels, and the rise of BlockDAG’s innovative technology.

Digital Assets

Ripple seeks $10 million penalty citing Terraform fine in SEC case

Ripple Labs wants to reduce the financial penalties proposed by the U.S. Securities and Exchange Commission (SEC) by leveraging recent fines imposed on Terraform Labs.

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.

blockdag

Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

Institutional FX

US sanctions trigger major shifts in Russian FX market, says Sergey Romanchuk

The U.S. sanctions imposed on June 12 against the Moscow Exchange and its clearing entity, the National Clearing Center (NCC), are set to cause massive disruptions in the Russian currency market, according to FX industry veteran Sergey Romanchuk.

<