Thailand Outlaws Meme Coins, Fan Tokens & NFTs Issued by Crypto exchanges
Regulators all across the globe are working to make the crypto industry’s laws more stringent. Thailand is one of the countries eager to get into the fast expanding industry.
As per sources, the Thai Securities and Exchange Commission (SEC), the country’s markets watchdog, has already taken a judgment that would affect the buying and selling of Meme coins, fan tokens, and NFTs on crypto exchanges.
As per the Securities and Exchange Commission, these coins lack a distinct aim or content, and hence have no fundamental value. Meme coins were solely led by social media trends, according to the regulator.
The agency did not name any specific cryptocurrencies, but the latest spike in popularity of meme cryptocurrencies like Dogecoin (DOGE) and Shiba Inu currency (SHIB) has drawn attention to them.
The firm explained that the worth of fan tokens was derived from the reputation of influencers. After a terrible collapse in recent weeks, NFTs also made it to the list of gainers. NFTs have fallen by more than 90% from their ATHs established earlier this year. The measure, according to the agency, is aimed to safeguard investors. This new regulatory guidance intends to better safeguard the interests of crypto investors.
Non-compliant exchanges face severe penalties or delisting of the crypto token if they do not comply and alter their listing regulations within the next 30 days. The identified sorts of coins have sparked a lot of debate in recent weeks. Pump and dump strategies have been labeled by some in the crypto world.
Charles Hoskinson of Cardano is one of several who has warned that not only will traders lose money, but they will also face rules that would damage the whole industry.
The role of NFTs and Meme currencies in the market has sparked the greatest debate. NFTs, for example, lured thousands of new participants who would not have known about the business otherwise. Following their introduction to the market through NFTs, several investors went on to find the broader market and participate in it.
Meme coins are in the same category. Indeed, Meme coins may have created a big number of crypto-novices wealthy by betting on a trendy phenomenon. Nevertheless, this cannot be true of all investors, since these currencies have been in sharp decline in recent months.