According to the BNN Bloomberg report, Thailand’s Securities and Exchange Commission has banned cryptocurrency exchanges from trading meme- or fan-based tokens, non-fungible tokens, and exchange-issued tokens. According to a statement from the regulator, the regulation affecting tokens like Dogecoin and tokenized arts and collectibles was enacted Friday with immediate effect, although it’s not retroactive. Ruenvadee Suwanmongkol, the financial regulator’s secretary-general, said the exchanges are banned from trading utility tokens or cryptocurrencies.
Thailand takes a strict approach towards NFTs and utility tokens.
Thailand SEC’s secretary-general said that crypto exchanges are banned from trading utility tokens or cryptocurrencies that have one or any of these characteristics: have no clear objectives or substance, and whose prices are dictated by social media trends, or meme-based tokens, tokenized by the fame of influencers, or fan-based tokens, a digital creation to declare ownership or grant rights in an object or specific right; it is unique and not interchangeable with digital tokens of the same category and type at the equal amount, or non-fungible tokens. Crypto exchanges are also not allowed to trade tokens utilized in a blockchain transaction and issued by crypto exchanges or related persons.
Crypto exchanges have 30 days to comply with these rules.
Crypto exchanges are required to comply and revise their rules within 30 days, the financial regulator said. Failure to do so could result in the delisting of the digital token, it added. Thailand is known to have strict crypto regulations. Bitkub, Thailand’s largest cryptocurrency exchange, was shut down by regulators after the trading platform faced a series of lengthy service outages. Despite these seemingly stringent conditions, the country’s crypto market has continued to thrive in recent years.