Islamabad, The Securities and Exchange Commission of Pakistan (SECP) has issued a directive to all companies and limited liability partnerships (LLPs) against entering into any advertisement or sponsorship agreements with entities engaged in surrogate advertising, particularly those related to cryptocurrency exchanges and betting platforms.

According to the Securities and Exchange Commission of Pakistan, the SECP’s decision comes in response to the growing trend of surrogate advertisements, where banned products like digital coins and betting platforms are promoted through indirect means, including the sponsorship of sports events. This practice also involves the use of online platforms, masquerading as sports blogs or news websites, to promote illegal digital coins, online betting, and cryptocurrency investments.

In a notification issued under Section 40B of the SECP Act, the SECP has advised all companies and LLPs to immediately terminate any existing agreements with surrogate entities or companies. The notification emphasizes strict compliance with this directive.

The SECP also issued a strong caution to the public about investing in internet platforms and mobile apps promoting cryptocurrencies. It highlighted that no individual, company, or entity advertising cryptocurrencies in Pakistan has been recognized or authorized by the SECP or other regulatory bodies. Consequently, investments in these entities carry significant risks and may be associated with fraudulent schemes.

This move by the SECP represents a significant step in safeguarding investors and reinforcing the regulatory framework surrounding digital currencies and online betting in Pakistan.