Thailand’s Security and Exchange Commission (SEC) has recently issued official bans and approvals of several key cryptocurrencies.
Thailand’s SEC has removed three cryptocurrencies from their approved list of accepted tokens for both virtual currency trading and ICO fundraising. In a press release published recently, the commission stated:
‘This latest update has resulted in the total of four cryptocurrencies for ICO investments and base trading pairs, namely (1) Bitcoin (BTC), (2) Ethereum (ETH), (3) Ripple (XRP) and (4) Stellar (XLM). Also, three other cryptocurrencies have been removed from the list, namely (1) Bitcoin Cash (BCH), (2) Ethereum Classic (ETC) and (3) Litecoin (LTC).’
Removal of Bitcoin Cash, Litecoin and Ethereum Classic from this ‘list’ means that these digital assets are no longer approved for the use within Initial Coin Offerings. Moreover, cryptocurrency exchange platforms cannot use these assets as base pairs with other virtual currencies. Worryingly this statement was not accompanied with any further explanation as to why these particular coins have been deemed unsatisfactory by Thailand’s SEC.
In contrast with the mentioned removal of BCH, LTC and ETC, four cryptocurrencies were given the green light for use in both ICO investments and base trading pairs, namely; Bitcoin, Ethereum, Ripple and Stellar. Holders of XRP will be particularly relieved that one major jurisdiction has potentially given an insight into the non-security classification of their digital asset. As a result of the ruling, all four currencies will now potentially be exposed to significantly greater South East Asia liquidity.
Standardized Data Submission
Calls to ensure the continued development of a robust regulatory framework for cryptocurrencies has led Thailand’s SEC to revamp the reporting standards of cryptocurrency businesses. Businesses and stakeholders have been asked to provide input and feedback on the proposed set of standardized rules for data submission by both cryptocurrency exchanges and brokers.
Whilst Thailand’s individual influence on global financial markets and regulations is relatively limited, history has often demonstrated that interconnected international communities do not operate in isolation; with one country’s regulators often ‘leading the way’ for others (Malta’s pro-crypto stance is just an example). The SEC’s decision to blacklist BCH, ETC and LTC is certainly troubling for these respective projects.