Cryptocurrencies can prove to be non-promising. Thailand has curtailed the use of cryptocurrencies recently. The Securities and Exchange Commission (SEC) of Thailand has declared a ban on certain cryptocurrencies like meme tokens, and non-fungible tokens (NFTs).
The following four categories have been excluded by Thailand’s SEC for digital exchange:
- Meme Tokens: Includes those tokens which have an unclear purpose, lack an underlying value, while their prices are apt to a frequent change due to social media trends.
- Fan Tokens: Includes those tokens which came into existence by influencers.
- Non-fungible Tokens: Includes those tokens which rose the use of blockchain among digital asset holders.
- Exchange Tokens: Includes those tokens which are provided by people upon exchange of digital assets.
The SEC rules aim at restricting digital exchanges that are made for trading within Thailand. Individual investors have the freedom to choose someone for conducting their trades in the enlisted tokens above.
‘Exchange tokens’ have been specifically enlisted by the SEC. The purpose of banning exchange tokens is to prevent crypto-dealers from producing tokens to be used among similar traders or their customers.
The ruling made by SEC seems to affect even one of the most prominent meme coins, Dogecoin. Tesla’s CEO Elon Musk has been mentioning Dogecoin in his tweets frequently. It is no hidden fact that the value of dogecoin had risen because of celebrities along with Musk.
All the dealings being made in the banned tokens are to be ceased immediately. The rules imply all such digital exchanges. Otherwise, the dealers might have to face the music and be even removed from their service by the authoritative powers in Thailand. Exchanges are to revise their regulations within 30 days.
The prime motive behind the Commission’s decision is to lower every possible chance of money laundering. They believe that it is a great step towards the best interest of the nation and its financial stability