The Securities and Exchange Commission of Thailand (SEC) has reiterated that digital asset exchanges are not allowed to list meme tokens due to their lack of fundamental value and high risk of price manipulation.
The move aims to maintain order in digital asset transactions and protect investors from potentially unfair practices.
Meme tokens are considered a volatile investment as they often lack a clear purpose or utility and are heavily influenced by social media trends.
The SEC’s directive is in line with existing regulations set out in the June 10, 2021 Notice on Regulation of Digital Asset Businesses.
Regulations restrict exchanges from offering meme tokens, but digital asset brokers are allowed to offer meme token services under strict conditions.
They act solely as brokers or agents and are required to ensure that their clients receive the best possible terms from the various exchanges they are connected to.
The SEC warns that brokers that also hold exchange licenses must not mislead the public that orders for meme tokens will be processed on the exchange platform.
Instead, these orders should be routed to other source exchanges only in the broker’s capacity. The commission also emphasizes that influencers and their business partners must follow these guidelines.
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