Thai regulators ban exchanges from trading meme tokens and NFTs

Digital asset platforms can no longer trade meme-based tokens, non-fungible tokens (NFTs) and exchange-issued tokens in Thailand after the country’s Securities and Exchange Commission banned them on Friday, according to the Bangkok Post. 

The ban applies to tokens like Dogecoin, which was created as a joke but has gained a lot of popularity in the crypto space. It also includes NFTs, which are unique tokens that represent digital files like images and sound.

Ruenvadee Suwanmongkol, the SEC secretary-general, said exchanges are banned from trading assets with the following characteristics: they have no clear objectives and their prices are influenced by social media, are assets tokenized by influencers or fan-based tokens, are any token that is unique and can’t be interchanged with other digital tokens of the same type, and are any tokens used in a blockchain transaction which are issued by digital asset exchanges. 

The regulator has given exchanges 30 days to adhere to the new regulation. If they fail to comply, the government body could delist their digital token. 

While some countries have embraced digital assets — El Salvador has become the first country to make bitcoin legal tender — some countries remain apprehensive about using crypto. 

This morning, the head of Consob, Italy’s securities regulator, cautioned that the unregulated use of crypto assets could negatively impact the market. And over the weekend, the head of the Netherlands’ regulatory body called for an immediate ban on digital assets, claiming they will never overtake fiat currencies.