- New rules approved by Thailand’s Securities and Exchange Commission (SEC) prohibit exchanges from listing meme tokens, NFTs and certain other types of crypto assets
- Meme tokens exploded in popularity this year thanks to the success of Dogecoin
- Thai regulators are also looking at regulating the DeFi space
Thailand SEC prohibits crypto exchanges from listing meme tokens, NFTs and more
Thailand’s Securities and Exchange Commission (SEC) has approved new rules that ban cryptocurrency exchanges from listing certain types of crypto assets.
Notably, the Thailand SEC’s new rules prohibit exchanges from listing so-called “meme tokens”, which the agency defines as tokens that have “no clear objective or substance” and whose price depends on “social media trends”.
Meme tokens surged in popularity this year thanks in large part to the massive gains displayed by Dogecoin, which was the first such cryptocurrency to reach widespread popularity. Meme tokens tend to have humorous branding (often prominently featuring an animal) and a large supply which translates to a low price per unit, making the cryptocurrency appear low-value and accessible to investors.
Holders often try to aggressively promote these tokens on social media with the help of memes in an attempt to go viral. Out of the hundreds of meme tokens that have been created in recent months, Shiba Inu has managed to amass the biggest market capitalization ($2.8 billion).
However, Dogecoin still reigns supreme in the meme token category. Even though it has corrected more than 50% from its all-time high, Dogecoin is still maintaining a massive valuation that’s hard to justify by any fundamental metrics other than the coin’s viral appeal. Currently, Dogecoin has a market cap of $43 billion and is the 6th largest crypto asset on the market.
The Thailand SEC also prohibits exchanges from listing “fan tokens”, which are crypto assets that are tied to celebrities or influencers. The new rules also don’t spare non-fungible tokens (NFTs), a type of crypto asset that saw a boom earlier this year alongside meme tokens.
In addition to the new rules for cryptocurrency exchanges, Thailand’s securities regulators are also setting their sights on the decentralized finance (DeFi) space. According to a June 1 report from the Bangkok Post, the SEC says that decentralized finance projects issuing their own tokens could be required to obtain a license.