The Thai Securities and Exchange Commission (Thai SEC) has reportedly banned the trade of non-fungible tokens (NFTs) and memecoins in the country.
The Bangkok Post reports that regulators issued a directive on Friday to crypto exchanges, prompting them to stop supporting cryptocurrencies with no clear objectives or substance on their platform.
The new law is set to affect NFTs, fan-based tokens and memecoins, as well as other projects the SEC believes do not have any clear objective as early cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH).
Ruenvadee Suwanmongkol, the SEC Secretary General, said exchanges are directed to stop the trade of cryptocurrencies whose price values are mostly dictated by events on social media platforms and fan-based tokens, among others.
Notably, crypto exchanges within the regulatory purview of the Thai SEC are mandated to review their laws and comply with the latest regulations within the next 30 days from the date of the publication, or risk having the tokens delisted permanently from their platforms.
Following the announcement, regulators made the move based on a report that publicly-listed Thai company Jay Mart is making plans to launch the country’s first NFT, which it hopes to affiliate with nine Thai celebrities.
Jay Mart plans on launching the NFT in a bid to promote its first digital currency called Jin coins. Investors of Jay Mart’s NFT will need to have access to JFin coins, which will be used to purchase the “limited number of NFTs,” Bangkok Post reports.
Preventing Future Market Manipulation
While many may believe the move is mainly directed at Jay Mart’s NFT’s quest, recent events in the crypto space could also be one of the reasons regulators are asking exchanges to stop trading memecoins and NFTs.
In mid-last month, the global crypto market suffered one of the biggest crashes, which saw the price of both popular and unpopular cryptocurrencies plummet by more than 50% within hours.
The crash came as a result of tweets from Tesla CEO Elon Musk, who raised concerns about the negative impact of Bitcoin transactions on the environment. Musk has also tweeted the price of the token to soar to tremendous highs since the beginning of the year.
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