Thai Securities and Exchange Commission (SEC) has moved to ban the trading of Meme coins, fan tokens and NFTs in crypto exchanges.
According to the watchdog, these types of cryptocurrencies lack any clear objective, substance or underlying value.
Regulators around the world are looking to tighten rules governing the crypto industry. One of those keen to get a handle on the rapidly growing market is Thailand. According to reports, the country’s markets regulator, the Thai Securities and Exchange Commission (SEC) has already made a decision that will impact the trading of Meme coins, fan tokens, and NFTs on crypto exchanges.
According to the SEC, these types of coins lack any clear objective, or substance and therefore lack any underlying value. The watchdog highlighted the fact that Meme cryptocurrencies were only driven by social media trends. The agency refrained from mentioning specific coins, but the recent upsurge by coins like Dogecoin (DOGE) and Shiba Inu coin (SHIB), shined a spotlight on meme coins.
Speaking on fan tokens, the agency stated that these coins drew their value from the popularity of influencers.
NFTs also made the list after a disastrous drop in the last few weeks. As we reported, NFTs have dropped by more than 90 percent from the ATHs set early in the year.
The regulator noted that the move is meant to protect investors.
This new regulatory guideline aims to enhance protection of digital asset traders’ interest.
Exchanges now have less than 30 days to comply and revise their listing rules, with non-compliant exchanges attracting heavy fines or risking delisting of the digital token.
Controversy over NFTs role
In recent months, the highlighted types of coins have drawn a lot of controversies. Some in the crypto community have viewed them as pump and dump schemes. Cardano’s Charles Hoskinson has been one of many who have been warning that they will not only see investors lose money but also attract regulations that affect the entire market.
NFTs and Meme coins have drawn the most controversy over their role in the market. NFTs for instance attracted thousands of new investors who would have otherwise never discovered the industry. After being introduced to the market through NFTs, some of the investors ended up discovering the wider market and investing in it.
The same can be said about Meme coins. In fact, Meme coins could have made a huge number of crypto-amateurs rich having just bet on a hot trend. However, this cannot be said of all investors since these coins have in recent weeks been on a steep decline.