The Thai Securities and Exchange Commission (SEC) has prohibited digital asset exchanges from trading meme- or fan-based tokens, non-fungible tokens (NFT) and exchange-issued tokens.
The regulation is expected to affect so-called meme tokens like Dogecoin, which originated as a joke cryptocurrency and has become an object of speculative frenzy, as well as tokenized arts and collectibles. The law was enacted last day with immediate effect, however, it’s not retroactive, according to a statement from the authority.
The current decision from SEC came amid reports that the Stock Exchange of Thailand (SET)-listed Jay Mart was making plans to launch the country’s first NFTs linked to nine local stars and celebrities. The move reportedly was aimed at boosting the ecosystem of Jay Mart’s digital token JFin coins.
The secretary-general of SEC, Ruenvadee Suwanmongkol stated that exchanges are banned from trading utility tokens or cryptocurrencies that have one or any of the following characteristics:
- Those having no clear objectives or substance, and whose prices are dictated by social media trends or meme-based tokens.
- Tokenized by the fame of influencers or fan-based tokens.
- A digital creation to declare ownership or grant rights in an object or specific right; it is unique and not interchangeable with digital tokens of the same category and type at an equal amount or NFTs.
- Digital tokens are utilized in a blockchain transaction and issued by digital asset exchanges or related persons.
The exchanges are required to comply and revise their rules within 30 days, the regulator said. Failure to do so could result in the delisting of the digital token.
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