Thailand Sets New Rules for Crypto Exchanges, Banning Meme Coins, Fan Tokens And NFTs

    On Friday, the Thai Securities and Exchange Commission (SEC) announced the new rules for cryptocurrency exchanges in the country. It forbid the trading of certain types of cryptocurrencies, such as meme coins, fan coins, and NFTs (non-fungible tokens).

    As stated Secretary-General Ruenvadee Suwanmongkol, the board of directors of the Thai Securities and Exchange Commission (SEC) has enacted new rules for digital asset exchanges operating in Thailand. The board meeting on June 9 had approved the SEC Notification No. Kor Thor. 18/2564, which describes the rules.

    SEC notice said that cryptocurrency exchanges are bared from “providing services related to utility tokens or cryptocurrencies that have any of the following characteristics,” such as:

    “(1) Meme token: having no clear objective or substance or underlying, and whose price running on social media trends; (2) Fan token: tokenized by the fame of influencers; (3) Non-fungible token (NFT).”

    The restrictions also include “Digital tokens which are utilized in a blockchain transaction and issued by digital asset exchanges or related persons.”

    The SEC did not name explicitly any specific crypto asset, but it probably affected such popular meme coins as Dogecoin (DOGE) and Shiba Inu (SHIB).

    Also, cryptoexchanges must add a requirement “to be imposed in the event that digital tokens issued by their own exchange or related persons are listed on the exchange.” The regulator warns that token issuers not complying with the rules and their white papers take a risk to be delisted from the exchange.

    “This new regulatory guideline aims to enhance protection of digital asset traders’ interest,” the SEC notice added. “The exchanges are required to comply and revise their listing rules in accordance with the Notification within 30 days from the effective date thereof.”

    “After publication in the Government Gazette, the Notification has become effective from 11 June 2021 onwards without retrospective effect,” the Thai SEC noted.


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