Thailand prohibits the use of some cryptocurrencies and NFTs


 

The authorities consider that it is a way to protect their citizens, especially small businesses. The market for digital currencies, for many years, remained a question mark for most of people. Only a few geeks were investing in the model and relying on a computing asset with no clear value. But in recent years this topic has attracted attention and more and more people are willing to turn real money into digital. That has led to several currencies growing in value, but also to many seeing the risk of speculation as too high to ignore. Therefore countries like Thailand are announcing the ban of some criptomonedas and NFT's.


Thailand has become the latest country to impose restrictions on cryptocurrency trading. The Southeast Asian nation's Securities and Exchange Commission (SEC) has implemented a ban covering meme coins like Dogecoin and, since last week, ordered the coins, along with NFTs, tokens to be removed. utility and social tokens, in a period of 30 days.


According to the Thai SEC, the new rules aim to protect traders from tokens that "have no clear objective or substance" and whose prices are influenced by trends on social media and influencers. It must be remembered that, for example, Dogecoin saw its value grow significantly after Elon Musk made a mention about it.


Along with Dogecoin, NFTs ( non-fungible tokens ) have also come into vogue earlier this year. These assets essentially facilitate purchases of digital art, people can keep the original, distinctive for its certificate of ownership, even though millions of copies are available on the internet. This option began to gain popularity and has served to sell, from memes and celebrity content to tweets.


Considering that it is a trend that could put the wealth of its citizens at risk, the Thai SEC announced that it will also ban exchange tokens, that is, proprietary currencies issued by crypto exchanges that can be used to exchange and pay.


The decision is part of Thailand's push for its cryptocurrency market regulatory reform. In fact, last May, Thailand's Anti-Money Laundering Office (AMLO) announced new rules that oblige those involved in digital exchanges to verify accounts through a device that requires customers to be physically present. . Furthermore, the authority said that the documents would be verified by relevant government agencies, according to the Bangkok Post.


Other countries against cryptocurrencies


Although there are nations like El Salvador that a few days ago became the first nation to accept Bitcoin as legal tender, there are others that do not want to know anything about cryptocurrencies, this is the case of China and Iran.


In the case of China, the authorities have recently banned financial institutions and companies from offering services related to cryptocurrency transactions. It must be said that cryptocurrency trading has been illegal in China since 2019 with the intention of curbing money laundering. However, people can still transact with currencies like Bitcoin online, something the Beijing government opposes for which three state-backed organizations issued a warning on social media saying consumers would have no protection in the event of incurring losses.


They added that the recent sharp swings in cryptocurrency prices seriously violate the safety of people's assets and are upsetting the normal economic and financial order.


For their part, the Iranian authorities point out that the creation of cryptocurrencies implies high levels of energy, which is why they are blaming the mining of digital currencies for blackouts presented in various cities of the country and announced a four-month ban (expires on 22 September), for mining currencies such as Bitcoin.


Despite the fact that the Iranian authorities officially recognized cryptocurrency mining in 2019 and established a licensing regime that required miners to identify themselves, pay a higher fee for electricity, and sell their mined bitcoins to the Central Bank of Iran, many operate in illegality and generate a high demand for energy for which the country is prohibiting its creation and use.

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