Thailand bans meme coins and NFTs from trading

The Thai Securities and Exchange Commission (SEC) has issued new regulations for cryptocurrency exchanges doing business in Thailand. Crypto exchanges are not allowed to trade certain forms of cryptocurrencies, such as meme coins, fan coins and non-fungible tokens (NFTs).

Thailand Sets New Rules for Crypto Exchanges

Thailand sets new rules for Crypto Exchanges, The Thai Securities and Exchange Commission (SEC) announced Friday that its board has approved new rules for cryptocurrency exchanges. Secretary-General Ruenvadee Suwanmongkol said its board meeting on June 9 passed a resolution approving the SEC Notification No. Kor Thor. 18/2564, which establishes the rules.  According to the SEC’s notification, digital asset exchanges are prohibited from “offering services linked to utility tokens or cryptocurrencies that have any of the following characteristics:” A meme token: a token with no obvious goal, content, or underlying value whose value is determined by social media trends; Influencers’ fame is used to create a fan token or a token that is non-fungible (NFT).

It is worth noting that exchange tokens have also been added to the list of banned tokens. This means that tokens like Uniswap or BNB may no longer be tradable on exchanges in Thailand.

Dogecoin and Shiba Inu will likely be affected by the new set of rules

Although, the SEC does not mention the name of any specific coins, meme cryptocurrencies, such as Dogecoin (DOGE) and Shiba Inu coin (SHIB), are likely to be affected, just like currencies created around an influencer such as Akoin, which was created by the artist Akon, or other fan tokens such as Ac Milan Fan Token (ACM).

The risk of strict rules against meme coins is that coins with a use case that also leverage the meme culture of the cryptocurrency market could also be affected by these laws if the research is not done properly. NFT artists who have a user base in Thailand will also likely be affected by the new set of rules. Their art will no longer be tradable and could lead to a decrease in buyers for artists who have a following in Thailand.

Token issuers that fail to comply with their white papers are at risk of having their tokens delisted from exchanges

Crypto exchanges must also establish a requirement “to be imposed in the event that digital tokens issued by their own exchange or related persons are listed on the exchange.” Token issuers that fail to comply with their white papers and related rules risk having their tokens delisted from the exchange, the regulator warned.

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

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