Thailand's SEC Board bans Meme coins and NFT trading; Know details

The Thailand Securities and Exchange Commission (SEC) has recently released a new digital asset marketing regulation that has banned digital asset exchanges and crypto exchanges from trading non-fungible tokens (NFTs). Meme Coins like Dogecoin, Shiba Inu, Safemoon and other similar coins have also been banned from trading in crypto exchanges. These new rules that have been introduced banning the trading of NFTs cover all forms of NFT trading from physical collectables to digital NFT artworks and tokens. Read on to know more about Thailand's new NFT and meme coin bans. 

Thailand Bans Memecoins and NFT Trading 

As per a report released by Ledger Insights, the Thai Securities and Exchange Commission imposed new digital asset marketing regulations amid increasing reports of scams involving NFTs and meme coins and fan tokens. While the SEC has not given a specific reason behind the bans, the inherent instability that comes with meme coins and the inflated prices of NFTs are cited to be the reason behind the bans. 

Ledger Insights also reports that there have many scams involving scammers selling fake NFTs and fan-tokens to unsuspecting investors, which brings down the reputation of the crypto industry as a whole. Moreover, the NFTs market blew up over the past year, and many experts believe the NFT market is currently highly overvalued and in a bubble. NFTs are pieces of digital artwork where the ownership is proven by the Non-Fungible Tokens, which works similar to a blockchain, and is a highly secure form of proof of ownership. 

The new bans also amidst reports of Thai business group Jay Mart launching their own NFTs and their own token JFin. While the NFT market is past its peak, NFTs are essentially computer files embedded with proof of authenticity, but that's all they are -- just digital artwork/computer files. NFTs serve no inherent functions, just like meme coins serve no purpose. It should be noted making NFTs has not been banned, only trading of NFTs has been banned. These bans appear to be set in place to protect the interests of investors from huge losses. 

This ban seems like a step in the right direction to protect investors against unmitigated risks that come with investing in overvalued NFTs with no inherent purpose and meme coins that experience extreme price fluctuations. However, the Dogecoin ban will likely anger a lot of residents, as Dogecoin is one of the most loved and largest cryptocurrencies. Stay tuned for more updates on cryptocurrencies. 

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