Thailand bans meme coins, NFT and exchange tokens in a new rule for the crypto market

June 15, 2021

The Securities and Exchange Commission (SEC) Board has approved the new rules that targets digital asset exchanges from providing services in relation to utility tokens and certain types of cryptocurrencies, according to a statement.

SEC Secretary-General Ruenvadee Suwanmongkol stated that the SEC Board Meeting No. 12/2564 held on 9 June 2021 had passed a resolution approving the “Notification of the Securities and Exchange Commission No. Kor Thor. 18/2564 Re: Rules, Conditions and Procedures for Undertaking Digital Asset Businesses (No. 11).”

The tokens that are to be delisted are meme tokens, fan tokens, non-fungible token (NFT) and digital tokens.

The rules also specify that the exchanges set a requirement to be imposed in the event that digital tokens issued by their own exchange or related persons are listed on the exchange. In this regard, the token issuer who fails to comply with the white paper and relevant rules in substance could risk having such tokens delisted from the exchange. This new regulatory guideline aims to enhance protection of digital asset traders’ interest.

After publication in the Government Gazette, the Notification has become effective from 11 June 2021 onwards without retrospective effect, the statement said.

The notice “prescribes that digital asset exchanges set their listing rules and prohibits the exchanges from providing services related to utility tokens or cryptocurrencies” such as  meme tokens, fan tokens, non-fungible token (NFT) and digital tokens.

In addition, a digital asset exchange has to set the requirement that the digital token issuer who is the exchange itself or related person comply with the white paper and relevant rules in substance. Failure to do so could result in the delisting of such digital token from the exchange, it said.

 

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