Thailand’s Securities and Exchange Commission has banned crypto exchanges from dealing with certain types of tokens.
The Thai SEC issued the guidelines, informing exchanges to desist from trading on four different types of tokens. These include nonfungible tokens (NFTs), fan-based tokens, meme-based tokens, and exchange-issued tokens.
Exchanges have until 30 days to comply
The SEC also mentioned that any crypto asset issued by exchanges must be in line with the existing asset guideline and correspond to the descriptions in their distinct white papers.
The regulator has also listed out consequences for any exchange that fails to adhere to the new directive. According to the SEC, the token will be delisted from the exchange.
Following the new rules, the Thai watchdog has given exchanges 30 days to adhere to the new restrictions.
As a result, meme-based tokens like Dogecoin (DOGE/USD) will not be listed on exchanges in Thailand when the new restriction comes into effect. It also affects tokenized arts and collectibles.
The move is coming following reports that SET-listed Jay Mart is planning to roll out NFTs using nine local stars and celebrities.
Many believe the Thai SEC is responding to the report to try and protect the market against the overflow of such tokens.
NFTs are usually tracked on blockchains and are regarded as non-interchangeable. Over the past few months, they have become increasingly popular methods of selling digital artworks, with some auctions going for millions of dollars.
Thai’s strict crypto regulations
Secretary-general of Thai SEC, Ruenvadee Suwanmongkol, stated that the exchanges are barred from engaging in crypto assets that have certain features. He said those tokens whose prices are determined by social media trends are also not allowed
He added that those tokens with no real substance or clear objectives are also not allowed to trade on crypto exchanges.
The cryptocurrency market in Thailand is not a straightforward one. The government recently proposed to Know Your Customer (KYC) requirements for exchanges in a bid to curtail the level of fraud in the market.
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