Thailand Issue Outright Ban on NFTs and Meme Coins Amid Crypto Crackdown

In a major crackdown on the new-age cryptocurrencies, the Thai Securities and Exchange Commission (SEC) has banned all local exchanges from trading exchange-issued tokens, meme coins, fan-based tokens, and other non-fungible tokens (NFTs).

The regulatory action basically targets mem coins like Dogecoin (DOGE) which started as a joke cryptocurrency and has recently driven major frenzy on Satoshi Street. Now, the exchanges have been asked to delist coins in this category along with utility tokens, NFTs, and other social tokens within a time period of 30 days.

The Thai SEC noted that these new rules will help protect traders and investors from speculative tokens with no “clear objective or substance”. The regulator noted that these tokens majorly show movement on social media trends and influencers.

The news comes amid reports that the SET-listed Jay Mart has been planning to launch the country’s first set of NFTs associated with nine such local stars and celebrities. Besides, the move is also part of the latest crackdown to push the long-awaited regulatory reforms in the country’s crypto market.

Defining Rules for the Thai SEC Ban

With its recent ban, the Thai SEC has categorized tokens and banning them that fall in one of the following categories:

1. Meme-based tokens with no clear objectives or substance and whose prices have been dictated with social media trends.
2. Digital tokens working on blockchain technology but issued by exchanges and related persons.
3. Fan-based tokens launched after influencers or other famous personalities.
4. Digital Tokens declaring ownership and rights in an object.
5. Tokens like NFTs that are unique and non-interchangeable.

As reported by the Bangkok Post, the Thai SEC has asked exchanges “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”.