Thailand bans trading of meme-based coins and NFTs on digital exchanges

The regulation is expected to affect tokens like Dogecoin as well as tokenised arts and collectibles

Representations of cryptocurrencies Bitcoin and Dogecoin are seen in this picture illustration taken June 7, 2021.   REUTERS/Edgar Su/Illustration
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Thailand’s Securities and Exchange Commission has banned digital asset exchanges from trading meme- or fan-based tokens, non-fungible tokens and exchange-issued tokens.

The regulation, which is expected to affect tokens like Dogecoin as well as tokenised arts and collectibles, was enacted on Friday with immediate effect, although it’s not retroactive, according to a statement from the regulator.

Ruenvadee Suwanmongkol, the regulator’s secretary-general, said the exchanges are banned from trading utility tokens or cryptocurrencies that have one or any of the following characteristics:

Having no clear objectives or substance, and whose prices are dictated by social media trends or meme-based tokens.

Tokenised 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 the equal amount or non-fungible tokens.

Digital tokens that are utilised 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, it said.