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No DOGE Allowed? Thai SEC Bans Meme, Fan and Exchange Tokens as Well as NFTs

The move by the Thai SEC is just the latest action by the regulator as it works to provide a framework for crypto in the nation.

Thailand's Securities and Exchange Commission (SEC) announced Friday it has banned several of the hottest types of tokens in cryptocurrency, including meme tokens, fan tokens and non-fungible tokens (NFTs), in an apparent attempt to rein in trading in crypto instruments in which the prices are largely determined by social whim.

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The move by the Thai SEC is just the latest action by the regulator as it works to provide a framework for crypto in the nation. While not looking to ban crypto altogether, the regulator has opted for a protective stance to prevent regular subjects and even traders from risking their funds through crypto investments.

Per the SEC, the following are no longer allowed to be traded in Thailand, effective June 11:

  • Meme tokens, which the SEC describes as having no clear objective or substance or no support with the price depending on the trend in the social world. Though not mentioned by name, presumably this applies to meme-based coins such as dogecoin (DOGE), the price of which has influenced to a massive degree by celebrities, most notably Tesla CEO Elon Musk.
  • Fan tokens, the digital assets that are created by personal preference.
  • NFTs, which for a few brief months this year was the hottest sector of crypto. They are digital assets that represent a wide range of unique tangible and intangible items, from collectible sports cards to virtual real estate and even digital sneakers. Unlike regular cryptocurrencies, NFTs cannot be directly exchanged with one another.
  • Exchange tokens such as those issued by Binance (BNB), Uniswap (UNI) and FTX (FTT) that allow holders to get benefits such as reduced transaction fees on the corresponding exchange.

Exchanges have 30 days from the effective date to amend their listing rules to reflect the new regulations.

CORRECT (June 13, 13:24 UTC): Changes definition of "fan tokens" and adds that exchanges must amend their listing rules to reflect the new regulations within 30 days of the effective date.

Read more: Thai SEC Warns DeFi Transactions Could Be Subject to Applicable Licensing Law

Kevin Reynolds

Kevin Reynolds was the editor-in-chief at CoinDesk. Prior to joining the company in mid-2020, Reynolds spent 23 years at Bloomberg, where he won two CEO awards for moving the needle for the entire company and established himself as one of the world's leading experts in real-time financial news. In addition to having done almost every job in the newsroom, Reynolds built, scaled and ran products for every asset class, including First Word, a 250-person global news/analysis service for professional clients, as well as Bloomberg's Speed Desk and the training program that all Bloomberg News hires worldwide are required to take. He also turned around several other operations, including the company's flash headlines desk and was instrumental in the turnaround of Bloomberg's BGOV unit. He shares a patent for a content management system he helped design, is a Certified Scrum Master, and a veteran of the U.S. Marine Corps. He owns bitcoin, ether, polygon and solana.

Kevin Reynolds