- Thai SEC (Security and Exchange Commission) suspends NFTs, Meme coins, and fan tokens trading on cryptocurrency exchanges.
- The regulators view these crypto coins as unreliable since they lack underlying value, substance, or clear objective.
Over the past month, authorities around the globe are active on stiffer regulations to govern the crypto market. Thailand is among the nations looking to tighten its rules on crypto activities. According to sources, the nation’s markets regulator, SEC, decided to suspend trading fan tokens, NFTs, and Meme coins on brokerage exchanges.
SEC stated that the cryptocurrencies lack any clear substance or object, thus no underlying value. The regulators noted that Meme cryptocurrencies relied on social media trends. For instance, Dogecoin surged meteoric due to tweets from Elon Musk. Also, SHIB is another meme coin that relied on social media site trends for price changes.
Talking about fan tokens, SEC stated that the coins depended on influencers to increase in value.
NFTs were also in the spotlight after drastic declines over the past few weeks. Keep in mind that NFTs have declined by over 90% since their highest value early in 2021.
The agency stated that it had to opt for that move to protect cryptocurrency investors.
For now, exchanges have about 30 days to revise their crypto listing and adhere to the rules.
NFTs have drawn controversies over the past few months. Some market players view the assets as bubble and burst schemes. Cardano’s executive Charles Hoskinson is among the individuals who warned that investors would not profit from NFTs, which will also attract new policies that will impact the entire crypto market.
At the moment, crypto enthusiasts are controversial about the role of meme coins and NFTs in the financial market. For instance, the asset boomed to attract new users who reaped losses after NFTs introduction to the wide market.
Also, Meme coins attracted newbies who invested with social media trends.
What do you think about the role of NFTs, meme coins, and fan tokens in the financial space? Comment below.