Thailand regulators outlaw NFT


TL;DR Breakdown

  • Thai SEC outlaws four tokens NFT inclusive
  • The implications of tokens placed on ban in Thai

The Security and Exchange Commission in Thailand has made it illegal for crypto exchanges to support tokens, NFTs inclusive.

In a statement the regulators released on Friday, it noted that the Secretary-General, Ruenvadee Suwanmongkol endorsed crypto exchange guidelines, Notification 18/2564 on “Rules, Conditions and Procedures for Undertaking Digital Asset Business,” on Wednesday to go into effect.

The new law has prohibited exchanges in the country from processing meme-based tokens, fan-based tokens, nonfungible tokens (NFTs) and exchange-issued tokens.

In cases of exchange own issued token, the regulator said that they have to conform to the description in their white paper and existing guidelines for digital assets.

The regulator state that exchanges that can not meet the requirement would have to delist such token. They also gave an ultimatum of 30 days for exchange firms to update their rules and be in compliance with these laws.

Implications of Thailand new regulations

This new policy means that meme-based token like Dogecoin whose price has surged significantly this year would not be listed on exchanges in Thailand. Similarly, Bitkub Coin (KUB), the native token of the local crypto exchange of the same name.

The regulators have also issued guidelines to retail traders as residents in Thai kick against the move.

The regulatory body proposed a $32,000 minimum annual income requirement for crypto investment in Thailand, and officials have hinted that investors should be required to attend a cryptocurrency trading training course or pass a test to prove their knowledge.

The country has been unfriendly with cryptocurrencies over the years and appears to keep putting stern regulation in place for actors in the industry.

In February, Thailand’s tourism board focused on targeting Japanese crypto holders, seemingly in an effort to revive the industry during the pandemic (many nationalities are unable to enter the country without quarantine.) However, the government has also proposed stricter Know Your Customer requirements in the country, requiring exchanges to physically scan chips embedded in Thai citizen ID cards.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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