The Thai Securities and Exchange Commission (SEC) has created new rules for cryptocurrency exchanges operating in the country. Certain types of cryptocurrencies, including meme coins, fan coins and non-fungible tokens (NFTs), are prohibited to trade on cryptocurrency exchanges.
Thailand sets new rules for crypto exchanges, bans certain types of cryptocurrencies
The Thai Securities and Exchange Commission (SEC) announced on Friday that its board of directors has approved new rules governing cryptocurrency exchanges. Secretary-General Ruenwadi Suwanmongkol said a resolution approving SEC notification no. 18/2564, which sets out the rules.
Digital asset exchanges are prohibited from “providing services related to utility tokens or cryptocurrencies that have any of the following characteristics,” the SEC notice details:
(1) Meme Tokens: which have no explicit purpose or substance or implied, and whose price is driven by social media trends; (2) Fan tokens: marked by the fame of influencers; (3) Non-fungible tokens (NFTs).
The prohibition also covers “digital tokens used in blockchain transactions and issued by digital asset exchanges or related individuals.”
Although the SEC did not mention the name of any specific coin, meme cryptocurrencies, such as Dogecoin (DOGE) and Shiba Inu Coin (SHIB), may be affected.
Crypto exchanges must also set a requirement “if digital tokens issued by their own exchange or related persons are listed on the exchange.” The regulator warned that token issuers are at risk of having their tokens removed from exchanges if they fail to comply with their white paper and relevant regulations.
According to the SEC notice, “the purpose of this new regulatory guideline is to enhance the protection of the interests of digital asset traders.” It adds:
Exchanges are required to comply and amend their listing rules as per the notification within 30 days from the effective date.
The Thai SEC also noted that “after publication in the Official Gazette, the notification has become effective without retrospective effect from 11 June 2021.”
What do you think about Thailand banning these cryptocurrencies from trading on crypto exchanges? Let us know in the comments section below.
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