Thailand is the latest country to impose restrictions on the cryptocurrency trade. The Southeast Asia Securities and Exchange Commission (SEC) has implemented a ban on meme coins like Dogecoin. Last week, exchanges were ordered to remove the coins, along with NFTs, utility tokens social tokens, within 30 days.
According to the Thai SEC, the new rules aim to protect token traders that “have no clear purpose or solidity” and whose prices are influenced by social media trends and influencers.
Dogecoin, in particular, has seen his online buzz soar thanks to mentions of Elon Musk (even during his stint as SNL host). The price of the so-called meme currency has fluctuated more recently against a background of crypto volatility triggered by bans in China and potential restrictions in India. El Salvador, on the other hand, recently became the first nation to accept Bitcoin as legal tender.
Alongside Dogecoin, NFTs (non-fungible tokens) were also in vogue earlier this year. Assets essentially allow unique purchases of digital art to be converted into tokens, thus functioning as certificates of ownership. A few months ago, they were impossible to ignore, riding a wave of hype after Twitter’s Jack Dorsey and Grimes sold their respective NFTs for millions. But more recently, the dominant interest in assets has waned as celebrities opportunistically joined the bandwagon and quickly reined in a once-attractive market.
In addition, the Thai SEC has announced that it is also banning currency tokens, reports Decrypt. These are registered currencies issued by cryptocurrencies that can be used to trade and pay fees.
The latest crackdown is part of Thailand’s drive for regulatory reform of the crypto market. In May, the Thai Anti-Money Laundering Office (AMLO) announced rules instructing digital exchanges to verify accounts via a “dip-chip” machine that requires customers to be physically present. In addition, AMLO said the documents would be verified by relevant government agencies, according to the Bangkok Post.
Want to know other news? See below for our Suggestions