Cryptocurrency News

Thai SEC bans exchanges from handling certain token types, including NFTs

Thailand’s Securities and Exchange Commission has approved guidelines prohibiting crypto exchanges in the country from supporting four different types of tokens in some cases.

In Friday’s announcement from the Thai SEC, regulatory body said That the Secretary-General Ruenwadi Suwanmongkol had approved the “Terms, Conditions and Procedures for Digital Asset Business” on Crypto Exchange Guidelines, Notification 18/2564, to take effect on Wednesday. The new rules prohibit Thai exchanges from handling meme-based tokens, fan-based tokens, non-fungible tokens, or NFTs, and exchange-issued tokens.

Source: Thailand Securities and Exchange Commission

As for tokens issued by exchanges, the SEC stated that any cryptocurrencies must comply with the details of their respective white papers as well as any existing guidelines for digital assets. If exchanges cannot meet these conditions, the regulatory body said they will have to delist the token. According to the SEC, Thai exchanges have 30 days to update their rules to list the tokens in compliance with the new guidelines.

This change in policy will reportedly affect tokens including Dogecoin (Doge), a meme-based cryptocurrency whose price has risen significantly over the last year, as well as Bitcube Coin (KUB), the native token of the local crypto exchange of the same name.

Thailand’s Securities and Exchange Commission has issued a number of guidelines and statements this year for individual traders and crypto firms, sometimes with harsh backlash from the public. The regulatory body has proposed a minimum annual income requirement of 1 million baht – about $32,000 – for crypto investments in Thailand, and officials have indicated that investors will be required to attend a cryptocurrency trading training course or prove their knowledge Must be required to pass a test.

related: Thai SEC forced to clarify proposed crypto rules after public backlash

The Southeast Asian country has had a complicated relationship with crypto over the years. In February, Thailand’s tourism board focused on targeting Japanese crypto holders, seemingly in an effort to revive the industry during the pandemic – with many nationalities unable to enter the country without quarantine. However, the government has also proposed tightening Know Your Customer requirements in the country, requiring exchanges to physically scan chips embedded in Thai citizen ID cards.