Thai SEC Enforces Ban on Meme Tokens, NFTs

The Securities and Exchange Commission (SEC) of Thailand has banned exchanges from dealing in sure forms of tokens. The ban will have an effect on meme- or joke-based tokens and fan-based cash, in addition to exchange-issued tokens and non-fungible tokens (NFTs).

The Thai regulator intends to discourage hypothesis in such tokens, believing them to don’t have any substance or goal.

The ban additionally prohibits dogecoin (DOGE), created as a joke in 2013. However, regardless of its standing as a meme-inspired altcoin, DOGE has turn into one thing of a market front-runner in 2021. It ranked the sixth most precious cryptocurrency by market capitalization, at time of writing.

NFTs are additionally prohibited. Digital asset exchanges will reportedly have 30 days to adjust to the brand new laws. The ban got here into impact on June 11, however isn’t retroactive. The Thai SEC has said that failure to conform will outcome within the token’s delisting.

Heavier regulation in Thailand

The Thai SEC’s newest choice is the most recent regulation enforced within the nation’s crypto area this yr. Back in May, stories revealed Thailand was bringing in new id verification checks. The laws required anybody eager to open a cryptocurrency account to verify their ID in individual. This was in a transfer in opposition to cash laundering.

At the time of reporting, Thailand had recorded an enormous rise in crypto account holders during the last couple of years. The numbers rose from 160,000 in 2020 to a whopping 700,000 in 2021, as of May. However, with their regulation in thoughts, Thai authorities anticipated that improve to decelerate once more.

Meanwhile, extra not too long ago, the SEC in Thailand turned its eye in direction of the nation’s decentralized finance (DeFi) sector. On June 1, stories revealed that the regulator would probably require any DeFi challenge that points a cryptocurrency to carry a particular license.

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