The Thai Securities and Exchange Commission (SEC) bans digital asset exchange from trading 4 types of tokens. Thai SEC bans digital assets like a meme or fan-based tokens, NFTs, and exchange-issued tokens from trading on a crypto exchange. As per SEC, filing trading for these tokens isn’t allowed in Thailand from June 11 onwards.
The Thai Securities exchanges announced that its boards of directors approved new rules for cryptocurrency exchange. Secretary-General Ms. Ruenwadee Suwanmongkol revealed that the SEC meeting held on 9 June 2021 had passed a resolution approving SEC Notification No. KorThor 18/2564. The announcement prohibits the exchange from offering “Utility Token Ready” or cryptocurrency having the following characteristics.
- Meme Token: having no clear purpose or substance or no support with the price depending on the trends in the social world.
- Fan Token: A digital asset caused by personal preference
- NFTs: A Digital creation to declare ownership or grant right to a particular thing. Unlike regular cryptocurrencies, NFTs cannot be directly exchanged with one another.
- Exchange Tokens: Digital tokens issued by the trading center itself like Binance BNB, FTXs, and FTT allow holders to benefit from reduced transaction fees on the corresponding exchange.
Also read: Thailand SEC Wants To Regulate DeFi Transaction in Accordance With DAA.
Even though the Thai SEC bans digital assets it did not mention the name of any specifically related coins. However, it is more likely to refer to meme coins like Dogecoin (DOGE), Shibu coin (SHIB). The SEC didn’t explain why it’s banning these coins. Exchanges have 30 days from the effective date to amend their listing rules to reflect the new regulation. If failed to do so, SEC will delist the token.
