The Thai Securities and Exchange Commission (SEC) has issued new regulations for cryptocurrency exchanges doing business in Thailand. On crypto exchanges, certain forms of cryptocurrencies, such as meme coins, fan coins, and non-fungible tokens (NFTs), are not allowed to be traded.
Thailand introduces new regulations for cryptocurrency exchanges, prohibiting the use of some types of cryptocurrency.
According to the SEC’s notification, digital asset exchanges are forbidden from “offering services linked to utility tokens or cryptocurrencies that have any of the following characteristics:”
(1) Meme token: a token with no obvious goal, content, or underlying, and whose value is determined by social media trends; (2) Influencers’ fame is used to create a fan token. (3) Token that is not fungible (NFT).
“Digital tokens that are used in a blockchain transaction and issued by digital asset exchanges or connected persons” are also prohibited.
Despite the fact that the SEC did not name any specific coins, meme cryptocurrencies such as dogecoin (DOGE) and shiba inu coin (SHIB) are likely to be impacted.
In the event that digital tokens issued by their own exchange or connected persons are listed on the exchange, crypto exchanges must impose a condition. The regulator cautioned that token issuers who do not follow their white papers and applicable guidelines risk having their tokens delisted from the exchange.
“This new regulatory guidance intends to increase protection of digital asset traders’ interests,” according to the SEC notification. It continues:
Within 30 days of the Notification’s effective date, the exchanges must comply with and update their listing rules in line with it.
“After publication in the Government Gazette, the Notification has become effective from 11 June 2021 onwards without retrospective effect,” according to the Thai SEC.