The Securities and Exchange Commission (SEC) of Thailand has approved new rules for cryptocurrency exchanges. They prohibit trading NFTs, fan tokens and meme tokens, as well as exchange tokens. The rules emphasize that crypto assets issued by exchanges must comply with separate white papers. As well as other existing digital asset requirements. If exchanges fail to meet these requirements, the token must be removed from the platform.
Thai exchanges have 30 days to adjust their listing policy and exclude tokens.
The ban expected to affect many well-known cryptocurrencies like Dogecoin, which recognized as the best investment, as it has grown by more than 26,000% over the past six months. Its name refers to the Internet meme Doge with a Shiba Inu dog. Dogecoin has even become the favorite cryptocurrency of Tesla founder Elon Musk. In December 2020, he tweeted the phrase “One word: Doge”, and this was enough for the digital currency to start rising in price.
There are other meme tokens that are available on crypto exchanges. Among them, for example, Piscoin and CumRocket stand out.
In a statement from the Thai regulator, noted that all meme coins are dubious instruments. Their cost varies with the activity of users of social networks.
The ban on trading affected NFT tokens
Thailand’s SEC has banned all platforms from trading in the above coins. The decision to ban trading in such instruments was made in the middle of this week. But it was published only the day before.
Trading platforms have a month to comply with the requirements of the regulator – otherwise their registration will revoke. Earlier, experts said that “the NFT bubble burst”, and sales of popular tokens collapsed by 90% in a month. Thus, the prohibition of trading applies to NFT tokens.
NFT tokens gained popularity in early 2021. When several digital art objects were sold for an unprecedented amount for this kind of transaction. After that, blockchain users began to compete in the originality of lots sold as a token.
An NFT token is a unique digital certificate that stored in the blockchain, guarantees the originality of the item and gives exclusive rights to it. This item can be photo, video, audio, digital artwork, publications, etc.
In April, the sales of the NFT market exceeded $ 2 billion. But the average cost of such tokens had already dropped significantly compared to the peak values in February. Earlier, experts from the crypto-news website Protos noted that the peak of sales of hype tokens fell on the beginning of May, and after a month, sales fell by almost 90%.
Thailand’s SEC strongly regulates cryptocurrencies and exchanges
Thailand’s SEC is quite strict in regulating cryptocurrencies and exchanges in the country.
Current SEC decision is not retroactive. The Thai regulator has determined a list of characteristics that assets on digital exchanges must not have in order to be able to trade.
In May, the regulator obliged users of cryptocurrency exchanges to go through mandatory identification procedures. The SEC also issued a requirement according to which only citizens of a country with an income of more than 1 million baht ($ 32,000) can invest in cryptocurrencies. However, after public outrage, the demand was withdrawn.
Earlier the SEC of Thailand planed to oblige issuers of DeFi tokens to obtain a special license.