Thai SEC bans exchanges from handling certain token types including NFTs

Thailand’s Securities and Exchange Commission has approved guidelines prohibiting crypto exchanges in the country from supporting four different types of tokens in certain cases.

In a Friday announcement from the Thai SEC, the regulatory body said that secretary-general Ruenvadee Suwanmongkol had approved crypto exchange guidelines, notification 18/2564 on “Rules, Conditions and Procedures for Undertaking Digital Asset Business,” on Wednesday to go into effect. The new rules ban Thai exchanges from handling meme-based tokens, fan-based tokens, nonfungible tokens, or NFTs, and exchange-issued tokens.

For tokens issued by exchanges, the SEC said that any cryptocurrencies had to precisely conform to the descriptions on their respective white papers as well as any existing guidelines for digital assets. If exchanges cannot meet these conditions, the regulatory body said they would have to delist the token. According to the SEC, Thai exchanges have 30 days to update their rules for listing tokens to be in compliance with the new guidelines. 

This change in policy would purportedly affect tokens including Dogecoin (DOGE), a meme-based cryptocurrency whose price has risen significantly since last year, as well as Bitkub Coin (KUB), the native token of the local crypto exchange with the same name. 

Thailand’s Securities and Exchange Commission has issued a number of guidelines and statements for individual traders and crypto firms this year, sometimes with harsh backlash from the public. The regulatory body proposed a 1 million baht — roughly $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.

Related: Thai SEC forced to clarify proposed crypto rules after public backlash

The southeast Asia country has had a complicated relationship with crypto for years. 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 quarantining. 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.