Thailand has become the latest Asian country after China to restrict the trading of highly speculative cryptocurrencies and non-fungible tokens (NFT). The Securities and Exchange Commission of Thailand (SEC) has issued new regulations banning certain types of digital currencies, including memetic currencies like Dogecoin. It stated that the ban aims to protect traders from tokens that “have no clear purpose or substance” and whose prices are influenced by social media trends and online influencers. The ban also includes “fan tokens,” which depend on the popularity of celebrities affected by it.
Although Thai nationals can still freely trade these utility tokens and digital coins, the purpose of tightening cryptocurrency rules is to make it difficult for exchanges handling these assets to operate in Thailand and protect the country’s financial system.
The US Securities and Exchange Commission said in a statement that exchanges that process these transactions must comply with the revised rules within 30 days (June 11) of the notice.
The SEC notice prohibits exchanges from providing services related to utility tokens or cryptocurrencies belonging to any of the following categories-meme tokens, fan tokens, NFT or non-fungible tokens, and used in blockchain transactions and used by the following institutions Digital tokens issued by digital asset exchanges or related personnel.
In recent weeks, some major cryptocurrencies such as Bitcoin and Dogecoin have exhibited extreme volatility, first hitting their lifetime highs and then falling to one of their lowest values. This volatility is mainly due to China’s crackdown on these digital asset transactions and controversial or negative tweets from tech billionaires such as Elon Musk, who suddenly changed his company Tesla’s acceptance of Bitcoin payments. Decided. As of 5:27 PM IST on June 16, the price of Bitcoin in India was Rs. 286.9 lakh rupees, while the price of Dogecoin in India is rupees. 23.31.
The Tesla CEO also blasted Bitcoin miners for promoting fossil fuels for mining and trading, and then said he was in talks with Dogecoin developers to find an energy-efficient way to trade memetic currencies.
Cooperate with Doge developers to improve system transaction efficiency. Very promising.
-The second Elon Musk (@elonmusk) May 13, 2021
After this, Musk did not update this. His tweets confused cryptocurrency investors and they asked him not to tweet about the matter. They also blamed him for the massive collapse of the crypto market last month.