Thailand’s SEC Bans Meme Tokens, NFTs
Thailand’s Securities and Exchange Commission (SEC) has doubled down on crypto regulations in the country with its latest ban on some tokens. The regulation on certain tokens follows its decision back in May that ushered in regulations on KYC guidelines which required people who wanted to open accounts on crypto exchanges to verify their identities in person. At the time, the regulation was directed at keeping money laundering in check. The latest ban issued against specific tokens covers meme- or joke-based tokens like Dogecoin, fan-based tokens, coins issued by crypto exchanges, e.g BNB, and non-fungible tokens (NFTs) and directs exchanges to stop trading them.
Lately, there have been clamours in some quarters for the regulation of cryptocurrencies. Tokenhell had earlier reported that the US Securities and Exchange Commission (SEC) had approached the US Parliament for additional tools in regulating the crypto space. Last month, it was in the news that President Joe Biden’s administration wanted to impose an almost 40% tax on capital gains for crypto transfers exceeding $10,000 U.S. SEC chairman Charles Retting had said that most cryptocurrencies were created to stay off the radar. He further requested for the collaboration of the U.S. Congress in achieving the crypto regulations attempts.
Crypto Regulations: Thailand Joins Other Countries
In another development, since May, China has been taking harsh measures against crypto mining and miners in line with carbon policy. Iran had also taken a hard line against crypto mining, further imposing fines on crypto miners who ran foul of its regulations despite its low-cost electricity. According to Tokenhell’s report yesterday, the Arab country was also looking at enacting crypto regulations. Also, crypto exchanges have been asked by most countries to step up on their know your customer and anti-money laundering rules. Popular crypto exchange Kraken had issued a statement to this effect saying users who failed to update their accounts from the starter tier would no longer have access to its margin trading services.
Thailand’s SEC Gives Reason for Ban on Some Coins
Thailand’s latest regulation is to discourage speculations behind such tokens saying they really have no use case. Since Elon Musk’s favourite crypto, Dogecoin is a meme-based token created in 2013 with no relevant use case behind it, this may affect the prices of the coins and tokens covered in the regulation. Regardless of this, Dogecoin has become a force to reckon with in the cryptocurrency space, placing it among the top six cryptocurrencies hours ago according to market cap. With Elon Musk looking to find a real use case for the token, it may stop being a joke-based token.
According to the notice issued, crypto exchanges are required to adhere to the latest directive within 30 days. Failure to do so, Thai’s SEC would order the coins and tokens to be delisted. Over the years, users’ accounts on crypto exchanges in the country increased from 160,000 last year to over 700,000. The latest regulation may cause the number to drop. Recently, Thai’s SEC also issued a directive on DeFi-based tokens requiring their creators to seek the SEC’s approval before launching their projects.
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