# SEC reiterates its prohibition on meme token services by digital asset exchanges

- Link: https://www.thailand-business-news.com/markets/139897-sec-reiterates-prohibition-on-meme-token-services-by-digital-asset-exchanges
- Published: 2024-05-09T08:47:00+07:00
- Author: SiamNews PR

**Digital asset exchanges are prohibited from listing meme tokens, but brokers can
offer meme token services if acting as intermediaries. Entities must send meme token
trading orders as brokers, not exchanges. Influencers and partners must comply.**

---

Bangkok, 7 May 2024 – Pursuant to the current rules for undertaking digital asset
businesses, digital asset exchanges are prohibited from listing meme tokens to maintain
orderliness in digital asset trading and protect investors against unfair activities
as well as mitigate the risk of price manipulation as meme tokens lack fundamental
factors and rely on individual preferences.

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However, the rules do not prohibit digital asset brokers from providing meme token
services to clients on the condition that they must act as broker or agent in trading
and exchanging digital assets for clients, and must ensure that clients receive 
the best execution terms from various sourced exchanges to which the brokers have
linkage.   

The SEC reiterates that any entity holding both digital asset exchange and brokerage
licenses intending to offer meme token trading services must send such trading orders
to sourced exchanges solely in their capacity as broker, without misleading the 
general public into believing that the orders are serviced by digital asset exchange.
Moreover, influencers and trading partners must also adhere to this principle. 

The SEC rules aim to protect investors, maintain market integrity, and support financial
innovations suitable for each type of digital asset business, without imposing undue
burdens on businesses. 

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Note: 

**Source** : [SEC reiterates prohibition on meme token services by digital asset exchanges and warns digital asset brokers against misleading investors](https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=10778&rand=113627)