Thai SEC orders exchanges to delist NFTs and meme coins, defined as those with “no objective or underlying value” whose price relies on social media trends: Thai Sec Nftsstevensdecrypt

Thai Sec Nftsstevensdecrypt: Thai SEC orders exchanges to delist NFTs and meme coins, defined as those with “no objective or underlying value” whose price relies on social media trends.

In a weekend of chaotic cryptocurrency trading, the Thai SEC ordered exchanges to delist almost entirely all cryptocurrency-related tokens. The claims are that the majority of these coins have no intrinsic value and are essentially worthless beyond an exchange listing.

The move was seen by many as the regulator’s attempt to bring crypto back to a trading regime based around Bitcoin and Ethereum, which are the two largest coins by market cap that are not regarded as memes.

This is the first time that a Southeast Asian market regulator has taken such firm action against alt-coins, which have been swept up in a wave of bullish speculation. The move has come at a time when regulators across Asia have begun taking serious steps towards filling gaps in regulation and consumer protection.

On Wednesday, the Thai SEC issued an announcement that it had ordered all cryptocurrency exchanges to cease offering trading in “Domestic Virtual Currency” (DVC) from 12pm on June 4. The announcement warned that any domestic exchange platforms that fail to comply with the order will be officially considered to be operating illegally.

DVC refers to any kind of coin whose price is based on sentiment or a joke, rather than being backed by an asset or a utility. Examples cited by the Thai SEC include “DogeCoin”, “GaysCoin” and “NobsCoin”.

The order is in line with the SEC’s policy of allowing cryptocurrencies to be traded only if they have an objective value or an underlying utility.

Another category of coins, “Foreign Virtual Currency” (FVC), are defined as having a base value in other mainstream cryptocurrencies such as Bitcoin or Ethereum.

The Thai SEC instructed all exchanges to delist FVC that has “no underlying value or backing asset, whose price is based on expectation and speculation, and which lacks good faith”.

The reason for the sudden decision is still unclear, however many believe that it is a reaction to the growing popularity of TRON, which is still in it’s early stages and does not have an objective utility. The title of TRON’s whitepaper contains a famous meme hailing its launch.

Yesterday, the Thai SEC announced that it has asked the country’s main banks to stop dealing with any cryptocurrency companies and traders who have not been registered with the SEC. The ban is expected to come into effect before the end of the month.