The Thailand Securities and Exchange Commission (SEC) has banned crypto exchanges from supporting meme coins and non-fungible tokens trading.
The Thai SEC announced that it has banned the trading of meme coins such as Dogecoin and non-fungible tokens (NFTs) in the country. As such, crypto exchanges operating in Thailand will have to delist all meme coins on their platforms and remove their NFT marketplaces.
The SEC’s board approved this regulation over the weekend, and crypto exchanges are now prohibited from providing services related to utility tokens. Per the regulatory agency, tokens and cryptocurrencies with the following features are now banned “(1) Meme token: having no clear objective or substance or underlying, and whose price running on social media trends; (2) Fan token: tokenized by the fame of influencers; (3) Non-fungible token (NFT).”
The ban also covers digital tokens used in a blockchain transaction and issued by digital asset exchanges or related persons. While the SEC didn’t mention any specific tokens, leading meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) will no longer be available to traders and investors in Thailand.
The NFT banning comes as a surprise due to their rising popularity. NFTs have become an excellent way for artists and content creators to digitise their work and earn adequate compensation in the process. So far, NFTs have gained adoption in the arts, music, film and sporting sectors.
The Thai SEC also made some regulatory changes to how crypto exchanges operate. According to the agency, “This new regulatory guideline aims to enhance protection of digital asset traders’ interest. The exchanges are required to comply and revise their listing rules in accordance with the Notification within 30 days from the effective date thereof.”
Thailand remains a key cryptocurrency market in Asia despite the tough regulation.