The Securities and Exchange Commission (SEC) on Monday insisted that digital assets are required to meet the criteria as notified by the regulator to be traded on any private operator's exchange.
Digital asset exchanges are responsible for defining the listing rules for digital assets, with each setting the criteria for selecting the assets to be traded on their exchanges, which must obtain approval from the SEC.
However, the listing rules of each exchange are different. For example, some may set minimum coin qualification criteria and coins must also meet the specified criteria.
"If the SEC, which has the duty to inspect the coins, finds that any coin does not meet the criteria of the digital asset exchange specified in the listing rules, the SEC has the power to order the exchange to revise the listing to be in accordance with the criteria set by the digital asset exchange," the SEC said in statement on Monday.
Earlier, the SEC ordered Bitkub Online (Bitkub), operator of Bitkub digital asset exchange, to review the listing of KUB coins (KUB).
By allowing Bitkub to coordinate with Bitkub Technology (BBT), the issuer of the KUB token, BBT amended the project technology standard of the KUB token to be in accordance with the scores considered by Bitkub.
KUB coins do not meet the criteria to be approved for trading in accordance with Bitkub's listing rules approved by the SEC and KUB coins are not eligible for approval to be traded in the digital asset exchange.
Bitkub was thus ordered to provide clear evidence to the SEC that the KUB project's technological standards meet the scores set by the company.
Recently, Bitkub submitted a report regarding the matter to the SEC and it has been under review by the regulator.
According to Sakolkorn Sakavee, co-founder and chairman of Bitkub, about 110 million KUB coins were issued by BBT and more than 60,000 investors investing in KUB. A total of 1,000 million coins were issued on May 20, 2021 with an open price of 30 baht each. The price fluctuated and dropped to 12 baht. BBT then burned around 89% of the coins and now only 110 million coins are traded.
The pending consideration of KUB coin listing led to the collapse of Siam Commercial Bank's (SCB) proposed acquisition of Bitkub Online (BO) for 17.8 billion baht.
SCB announced in November last year it would acquire 51% of BO, causing the price of KUB coins to skyrocket to a record high of 580 baht on Dec 28. On Aug 25 this year, both parties announced the cancellation of the deal, causing KUB's price to fall to its lowest level of near 40 baht. The price rebounded to 58 baht late on Monday.
