Thailand’s Securities commission has outlawed the trade of meme or supporter tokens, NFTs, and exchange-issued tokens on digital asset exchanges.
Thailand’s Securities and Exchange Commission has barred cryptocurrency exchanges from selling meme- or fan-based tokens, non-fungible tokens, and exchange-issued tokens, according to a BNN Bloomberg report. The law, which affects tokens like Dogecoin and tokenized artwork and collectibles, was approved Friday with immediate effect, but it is not retroactive, according to a statement from the agency. The exchanges are prohibited from trading utility tokens or cryptocurrencies, according to Ruenvadee Suwanmongkol, the finance regulator’s secretary-general.
Thailand is severe when it comes to NFTs and utility tokens.
The secretary-general of Thailand’s Securities and Exchange Commission stated that crypto exchanges are prohibited from selling utility tokens or cryptocurrencies that contain one or more of the following characteristics: a digital creation to declare ownership or grant rights in an entity or specific correct; it is unique and not interchangeable with digital tokens of the same category and type at the very same amount, or non-fungible tokens, have no clear objectives or substance, and whose prices are governed by social media trends, or meme-based tokens, tokenized by the fame of influencers, or fan-based tokens, a digital creation to declare possession or grant rights in an object or specific request; it is distinctive and not interchange Tokens used in a blockchain transaction and issued by crypto exchanges or connected parties are also not authorized to be traded on crypto exchanges.
These restrictions offer a 30-day grace period for cryptocurrency exchanges to comply.
The banking authority stated that cryptocurrency exchanges must conform and update their policies within 30 days. Failure to do so might result in the digital token being delisted, according to the statement. Thailand is well-known for its crypto rules. Following a series of extended service disruptions, Thailand’s largest cryptocurrency exchange, Bitkub, was shut down by regulators. Despite these ostensibly harsh conditions, the country’s cryptocurrency economy has thrived in recent years.