The Thai regulatory authorities have recently taken an action within the crypto-space that would concern the entire crypto community in the country. The regulatory authority has recently gone ahead and banned four different cryptocurrencies/tokens under certain scenarios.
The sources confirm that the particular regulatory authority is the Securities and Exchange Commission of Thailand. The authority has released guidelines surrounding the prohibition of cryptocurrencies and tokens in particular cases.
As a result of the new guidelines, cryptocurrency exchanges will no longer be able to offer particular tokens/cryptocurrencies. The announcement related to the release of the particular guidelines was made by the Thai SEC on Friday, June 11.
It was confirmed by the Thai SEC on Friday, June 11 that Ruenvadee Suwanmongkol, Secretary-General has approved the new guidelines for the cryptocurrency exchanges.
The Thai SEC has confirmed that the new guidelines for the cryptocurrency exchanges would go into effect starting coming Wednesday, June 16. According to notification 18/2564, the cryptocurrency exchanges would be banned from handling several tokens.
The guidelines reveal that tokens such as exchange-issued tokens, nonfungible tokens, fan-based tokens, and meme-based tokens are banned for exchanges to handle.
In the case of exchange-issued tokens, the Thai Securities and Exchange Commission has added a condition that an exchange needs to meet before it can offer the token. The regulation suggests if an exchange wants to offer its own cryptocurrency, it needs to add it to its white papers. Furthermore, the exchange needs to add details about the particular token in their digital assets guidelines.
Only under the above-mentioned conditions, can an exchange offer its own token to the users. If the above conditions are not met, then the exchange needs to delist the particular token until it adds it.
Following the release of the new guidelines, the Thai SEC has also revealed the time period the exchanges have to comply with the new guidelines. According to the Thai Sec, the exchanges have 30 days period to comply with the new guidelines and de-list the tokens from their platforms.
As a result of the above guidelines, one of the major cryptocurrencies such as Dogecoin (DOGE) would also end up getting de-listed. Despite its current market valuation and demand, Dogecoin (DOGE) is a meme coin, which makes it crypto that Thai exchanges cannot offer.
Similarly, one of the local cryptocurrency exchanges in Thailand, Bitkub would have to delist its native token, Bitkub Coin (KUB). However, if the exchange follows certain guidelines provided by the Thai SEC, then it can start offering its native token KUB.
As the cryptocurrency industry continues to grow in Thailand, the country is taking all the necessary steps to make it regulated and controlled so the industry does not start operating on its own.