Thai SEC Bans Three Cryptocurrencies From ICO Use, Base Trading Pairs

Thailand’s Securities and Exchange Commission (SEC) has recently banned three major cryptocurrencies from being used in initial coin offerings (ICOs), and from being used as base trading pairs on cryptocurrency exchanges operating in the country.

According to a report published by the Bangkok Post, the regulator no longer allows Litecoin, Bitcoin Cash, and Ethereum Classic from being used in ICOs and on trading platforms, after assessing these cryptos’ “development, related news, and other important factors.”

The Bangkok Post points out that the ban shouldn’t have a large impact on investors, as no authorized ICO in the country accepts BCH, LTC, or ETC for investments, and no crypto exchange uses them as base trading pairs.

Currently, the Thai government has a list of allowed cryptocurrencies, and it includes Bitcoin, Ethereum, Ripple, and Stellar. These can be used in ICOs and as base trading pairs, although they do not have a legal tender status to be used as payments for goods and services.

The government published a list of seven approved cryptos in July of last year, basing its decision on several factors, including liquidity and how many tokens were in circulation, as well as decentralization.

So far, seven crypto firms have been allowed to legally operate in Thailand, and five of them are crypto exchanges. Earlier this year, the Central Bank of Thailand reportedly asked financial institutions not to engage in “any business” related to cryptocurrencies.

The central bank’s move also saw it ask financial institutions to deny its customers the right yo buy cryptocurrencies using their credit cards. Despite the move, Thailand is reportedly still one of the countries with the largest number of residents owning cryptocurrencies.

In November of last year, Thailand’s deputy prime minister called for “more measures to control” cryptocurrencies, after explaining these have been becoming more sophisticated and were calling for authorities’ oversight.

Notably, Thailand has looked into blockchain voting. The country’s stock exchange is also reportedly looking to enter the cryptocurrency space.