Cryptocurrency changes that are likely to affect the domestic market more or less may be a matter of the latest announcement that the Securities and Exchange Commission (SEC) announced rules, conditions, and methods for operating digital asset businesses (No. 11) on June 9. It is effective from June 11 onwards without retrospective enforcement. And let the buying-selling center follow and set its own rules to be announced within 30 days. If you want to start bitcoin trading, check why bitcoin is better than the central banking system.
The central theme of the announcement is that trading platforms in Thailand are prohibited from registering to buy-sell (list) 4 types of coins: meme tokens, fan tokens, coins created by trends or influencers, NFT, and the types of coins that the trading platform creates itself (Prohibit registration on own trading board).
Of course, most investors did not agree with the announcement. In terms of the new directive, both will reduce the competition for developers in Thailand. And may not be fair to many Marketing Departments.
Let’s look at the details of announcements from the SEC, one by one, in more detail.
1) Do not buy-sell coins or tokens with no objective or unsupported purpose with meme token prices.
2) Do not buy-sell coins or tokens generated by fan tokens.
4) It is forbidden to register the purchase and sale of digital tokens issued by the exchange or any person associated with the exchange for the purpose.
The announcement caused a debate among traders and investors, as number 1 was about the dividing line of ‘meme coins’ because the SEC said that some coins were traded and were influenced to cause the price to go up. It can get high—it’s a meme coin. But investors think about the nature of the crypto market. It is already speculated. And this may be an ambiguous requirement. Therefore, it can be taken against anyone according to interpretation.
As for item 3, the investors will most likely disagree. As you can see, NFT is currently used in the art industry. Many artists work on their art and use NFT to identify a single right to sell it (see NFT story: www.facebook.com). Currently, the use of NFT in the global market has proven to be a valuable and functional technology. Valid because it is not only applicable to art but can also be applied to identify the right to buy-sell documents, land title deeds, or identity documents.
And point 4 seems to be the most complicated. Because at present, ‘Bitkub’ is the only one in the Thai market that ‘Register your coin on your platform’ before it’s announced, making ‘KUB’ the only coin that can run. At the same time, others are prohibited from registering on their boards. So causing criticism that it is anti-competitive in the market (not-competitive) or not?
What Bitcast podcast show?
On June 12, the YouTube channel ‘Bitcast’, which live streams discuss the cryptocurrency market issue, invited Waratchaya Srimachan, Senior Assistant Secretary-General. The SEC discusses the issue of the new announcement; she said the SEC’s announcement aims to take care of the orderliness of the coin and the trading market. Banning the four coins had different purposes. (Listen to the full clip at: www.youtube.com) Waratchaya said that hundreds of thousands of people have invested due to the Thai crypto market. There is 24/7 trading, and new coins are created at a low cost and without a trace.
“Would we want our people to trade coins like that? It has no benefit to the economy as a whole. So the first coin is a meme token that the SEC sees as having no benefit to the country’s economy and society. It’s just speculation,” and said a guideline would be released to determine the meme token later. As for the fan token, Waratchaya said that it is a coin that has its value. Whoever loves anyone can take it, such as a football player medal? But the value of the coin depends on the mood, feelings, and influence that the influencer promotes. Making the price change without having anything to reflect how much the price will be transparent.
The NFT coin, she sees as a substitute for technology. Which typically trades outside the trading platform, and the SEC will not write. But writing to make it clear that NFT is forbidden to trade, she said that she does not view NFT technology as evil, just that it is not suitable for trading on trading platforms.
Coins issued by the trading center
She argues that the exchange and purchase centers register their coins for sale. It will cause the trading center to conflict with interest in keeping the coin price following the market mechanism. The trading center is responsible for ensuring the trading interests of investors on the platform are fair and transparent.
