Thai SEC Warns Against Listing Meme Tokens on Digital Asset Exchanges

Thai SEC Warns Against Listing Meme Tokens on Digital Asset Exchanges

by May 9, 2024

Thailand’s Securities and Exchange Commission (SEC) has reiterated that digital asset exchanges are not allowed to list meme tokens, citing a lack of fundamental value and high risk of price manipulation.

This move is aimed at maintaining order in digital asset trading and safeguarding investors from potentially unfair practices.

Meme tokens, which often lack clear objectives or utility and are heavily influenced by social media trends, are seen as unstable investments.

The SEC’s directive is in line with the existing regulations set forth in the 10 June 2021, notification regarding the rules for digital asset businesses.

While the regulations restrict exchanges from offering meme tokens, digital asset brokers are permitted to provide meme token services under strict conditions.

They must operate solely as brokers or agents and ensure that clients receive the best possible terms from various exchanges to which they have connections.

The SEC warns that brokers who also hold exchange licenses must not mislead the public into believing that meme token orders are processed on the exchange platform.

Instead, these orders should be routed to other sourced exchanges in their broker capacity only. The commission also emphasises that influencers and trading partners must comply with these guidelines.