Thailand SEC Cracks Down on Crypto, Bans Dogecoin and NFTs

Thai SEC has implemented a ban on Dogecoin as Well as NFTs. The prohibitions are aimed at protecting traders from tokens that have “no clear objective or substance.” 

June 15, 2021 | AtoZ MarketsThailand’s Securities and Exchange Commission (SEC) has banned local exchanges from trading meme cryptocurrencies, fan tokens, and NFTs.

The restrictions will affect cryptocurrencies like Dogecoin and collectibles in the form of non-fungible tokens.

Reason for the ban

According to the Thai SEC, the new rules are aimed at protecting traders from tokens that have “no clear objective or substance” and whose prices are swayed by social media trends and influencers.

The head of the SEC, Ruenwadi Suwanmongkol, said that the department has prepared a guide for crypto exchanges with a description of the signs of digital assets prohibited for trading.

They relate primarily to coins that “do not have clear goals or content, developing according to trends dictated by social networks.” Digital currencies based on Internet memes and native exchange tokens are also prohibited.

The restrictions came into effect on June 11 and are not retroactive. Marketplaces must revise their rules within 30 days, otherwise, it will lead to forced delisting of coins.

Recall that in early June, the Thai authorities thought about regulating the DeFi sector. According to the SEC, token-related activities may require a license from the financial regulator in the future.

In May, the AtoZ Markets reported on the authorities ‘plans to oblige local crypto exchanges to scan chips embedded in citizens’ ID cards when opening new accounts.

Think we missed something? Let us know in the comment section below.

Share Your Opinion, Write a Comment