The Securities and Exchange Commission of Pakistan (SECP) has advised all companies and limited liability partnerships (LLPs) not to enter into any type of advertisement or sponsorship agreements with entities involved in surrogate advertising and ensure compliance in “true letter and spirit”.

“Surrogate advertising is the promotion of banned products, digital coins, and betting platforms as substitute goods, often through indirect means like sponsorship of sports events, aiming to implant the brand in consumers’ minds,” the SECP said in a statement on Tuesday.

The statement comes two months after the government decided to stop gambling advertising companies. The caretaker information ministry had said that such companies were affecting Pakistan’s economy.

The SECP came into action after taking notice of the increasing trend of surrogate advertisements on certain internet-based cryptocurrency exchanges and betting platforms.

“It has also been observed that various online platforms, disguised as sports blogs and news websites, are promoting illegal digital coins, online betting, and cryptocurrency investments,” it said.

It clarified that none of the individuals, companies, or entities advertising cryptocurrencies in Pakistan have been recognised or authorized by the SECP or other regulatory bodies.

“The public is strongly advised to exercise extreme caution while making investments in such internet platforms and mobile apps.”