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Thailand regulator bans some types of digital tokens

Securities and Exchange Commission (SEC) Thailand prohibits digital exchanges from servicing meme tokens, fan token, non-fungible tokens and exchange tokens
The Securities and Exchange Commission Thailand listed the characteristics as meme tokens, fan tokens, non-fungible tokens and exchange tokens
By Goh Thean Eu   
June 18, 2021

Thailand’s securities regulator has prohibited digital asset exchanges from servicing digital tokens with four types of characteristics, effectively banning these tokens to protect investors from the risky assets.

The Securities and Exchange Commission (SEC) Thailand listed the characteristics as meme tokens, fan tokens, non-fungible tokens and exchange 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. Failure to do so could result in the delisting of such digital token from the exchange,” the SEC says in a statement recently. “This new regulatory guideline aims to enhance protection of digital asset traders’ interest.”

Meme tokens are cryptocurrencies without a clear objective or underlying assets, such as Dogecoin and ShibaInu. Prices of these tokens are mainly determined by social media trends.

Fan tokens are cryptocurrencies that give owners a voting right and/ or access to unique club-specific rewards. Several soccer clubs in Europe have launched their version of fan tokens.

Non-fungible tokens have their own unique digital signatures that make it challenging to exchange them for equal value. Video clips and photographs are among items that can be turned into non-fungible tokens.

Exchange tokens are cryptocurrencies created by digital exchanges.

The new rules come after wild swings in the price of TukTuk Finance digital tokens traded on Bitkub Chain. According to a June 1 report in the Bangkok Post, TukTuk Finance digital tokens skyrocketed to several hundred dollars and then plunged to US$1 within a few minutes on May 30.