Digital Asset Selection Criteria

Digital Asset Selection Criteria

        As a digital asset service provider, Waan Exchange Co., Ltd. prioritizes the protection of investors and building credibility in the digital asset market. It meticulously establishes digital asset listing rules to select quality digital assets suitable for investment.

Categories of Digital Assets according to Company Criteria

The company has defined 2 categories of digital assets as follows:

• Digital Asset Type 1: Refers to Cryptocurrency or Digital Tokens that have been traded on other digital asset exchanges before being listed on the company's digital asset exchange, and which were not offered for sale through an ICO Portal approved by the Securities and Exchange Commission (SEC) Board.

Listing Rules for Digital Asset Type 1

Digital Asset Type 1 must meet all the following qualifications and characteristics:

1. It must be a Cryptocurrency or Digital Token that is legally traded in a country not on the list of high-risk countries for money laundering as published on the website of the Anti-Money Laundering Office (AMLO).
2. Must have a Whitepaper containing information about the characteristics of the digital asset.
3. Must be traded on at least 1 digital asset exchange, and that exchange must be listed on a credible website, such as www.coinmarketcap.com, etc.
4. Must be listed among the top 1,000 on coinmarketcap.com or coingecko.com.
5. Must have a Circulating Supply of not less than 100,000 coins/tokens.
6. Must have channels for the following information, progress, or news about the coin/token, such as a Homepage of the digital asset owner.
7. Must not have been offered for sale through an ICO Portal approved by the SEC Board.

Delisting

Digital Asset Type 1 shall be delisted upon meeting any one of the following conditions or criteria:

1. The digital asset Issuer (issuer and offeror) wishes to delist or cease trading.
2. The digital asset is characterized as being deceptive or fraudulent.
3. The digital asset's trading price is equal to zero Baht (0).
4. The digital asset is stolen in an amount exceeding 25% of the Circulating Supply.
5. Non-compliance with the Whitepaper and material terms.
6. Other cases where the digital asset may be deemed to pose a risk of damage to investors or is a digital asset prohibited from being offered to customers under subsequent SEC regulations.

Digital Asset Type 2

• Digital Asset Type 2: Refers to digital assets offered for sale through a Digital Token Offering System Provider (ICO Portal) and have received a selling authorization from the SEC Office as follows:

1. Investment Token: An electronic data unit created on an electronic system or network to define a person's rights to participate in the investment of any project or business.
2. Utility Token: An electronic data unit created on an electronic system or network to define the right to obtain specific goods or services or other specific rights, as stipulated in the agreement between the digital token issuer and the digital token holder.
3. Non-Ready-to-Use Utility Token (Utility Token Not Ready to Use): Means a Utility Token where the issuer intends to use the funds raised from the offering to create or develop goods or services so that the holder can utilize the rights of those tokens.
   1. Group 1: Non-Ready-to-Use Utility Tokens whose primary purpose is consumption, e.g., digital vouchers, tokenized coupons, tokens giving rights to exchange for concert tickets, fan meeting tickets, airfare, idol voting points, giving stars or gifts to Influencers or YouTubers, art, pictures, music, stamps, or videos in the form of Non-Fungible Tokens (NFTs) which grant specific rights to the NFT holder, and digital tokens used as a substitute for a certificate or any entitlement document, e.g., renewable energy certificates, carbon credits.
   2. Group 2: Non-Ready-to-Use Utility Tokens of other characteristics outside of Group 1, whose primary purpose is not consumption, and are not used as a substitute for a certificate or any entitlement document, e.g., tokens granting access to goods and services on a system or electronic network with distributed ledger technology used on the digital asset exchange, used to pay fees, as a discount on fees, or accumulated to upgrade membership levels.
4. Ready-to-Use Utility Token (Utility Token Ready to Use): Means a Utility Token ready for the holder to utilize its benefits.
   1. Group 1: Ready-to-Use Utility Tokens whose primary purpose is consumption, e.g., digital vouchers, tokenized coupons, tokens giving rights to exchange for concert tickets, fan meeting tickets, airfare, idol voting points, giving stars or gifts to Influencers or YouTubers, art, pictures, music, stamps, or videos in the form of Non-Fungible Tokens (NFTs) which grant specific rights to the NFT holder, and digital tokens used as a substitute for a certificate or any entitlement document, e.g., renewable energy certificates, carbon credits.
   2. Group 2: Ready-to-Use Utility Tokens of other characteristics outside of Group 1, whose primary purpose is not consumption, and are not used as a substitute for a certificate or any entitlement document, e.g., tokens granting access to goods and services on a system or electronic network with distributed ledger technology used on the digital asset exchange, used to pay fees, as a discount on fees, or accumulated to upgrade membership levels.

Listing Rules for Digital Asset Type 2

Digital Asset Type 2 must meet all the following qualifications and characteristics:

1. Must have received authorization for the offering from the SEC Office.
2. The digital token must meet all qualifications specified in the “Information Collection Form for Digital Token Offering Qualifications.”
3. The digital token issuer, project owner, or issuing company must have equity of not less than 1,000,000 Baht (one million Baht).
4. The value of the project being issued and offered must be not less than 10,000,000 Baht (ten million Baht).
5. The digital token issuer, project owner, or issuing company must not have a history of criminal offenses involving deception, fraud, or dishonesty, and must not be on the list of individuals with a history of wrongdoing or corruption, and must not commit any offense under the law on the prevention and suppression of money laundering and the law on financial support for terrorism, and the regulations of the relevant regulatory authority regarding those specific goods, services, or other rights.
6. Must have a Whitepaper with clear details regarding the project, business plan, objectives, goals, and the method of exercising the rights to the specific goods, services, or other rights.
7. The digital token issuer, project owner, or issuing company must have a clear operational plan (Roadmap) for providing the specific goods, services, or other rights, e.g., having a prototype and a Minimum Viable Product (MVP) level of not less than 25%.
8. The digital token issuer, project owner, or issuing company must have channels for tracking information, progress, or news regarding the coin/token, such as a Homepage or a link to information sources.
9. If the ICO Portal arranges for an independent appraiser or an opinion from a relevant expert, the independent appraiser must possess the knowledge, ability, and experience relevant to the project's business type for at least 1 year.

Delisting

Digital Asset Type 2 shall be delisted upon meeting any one of the following conditions or criteria:

1. The digital token issuer, project owner, or issuing company wishes to delist or cease trading on the company's exchange.
2. The digital asset is characterized as being deceptive or fraudulent.
3. Non-compliance with the Whitepaper and material terms, such as a lack of progress as defined.

Other cases where the digital asset may be deemed to pose a risk of damage to investors or is a digital asset prohibited from being offered to customers under subsequent SEC Board regulations.

Provided that all types of digital assets offered to customers must not have any of the following characteristics:

1. Utility tokens ready for use or cryptocurrencies with any of the following characteristics must not be offered for trading on a digital asset exchange.
   1.1. Having no clear purpose or substance, or having no underlying support, with prices dependent on trends on social media (Meme Token)
   1.2. Arising from personal popularity or individual fandom (Fan Token)
   1.3. Digital tokens issued by the digital asset exchange operator itself, or by persons related to the digital asset exchange operator, as follows, for use in transactions occurring on the blockchain:
   1. Directors, executives, or persons having controlling power over the business
   2. Spouses or persons living together as husband and wife of the persons under (1.3.1)
   3. Juristic persons over which the persons under (1.3.1) have controlling power
   4. Parent company, subsidiary, or associate company, in accordance with the characteristics prescribed in the Notification of the Securities and Exchange Commission concerning the determination of attributes of entities within the digital token offeror’s group, mutatis mutandis.
2. Utility tokens of the following types must not be offered for trading on a digital asset exchange.
   1. Non-ready-to-use utility tokens whose primary purpose is for consumption, or which serve as a certificate or represent any right document
   2. Ready-to-use utility tokens whose primary purpose is for consumption, or which serve as a certificate or represent any right document
   3. Ready-to-use utility tokens other than those specified in 2.1 and 2.2 that have the following characteristics:

a) Not subject to the provisions in Chapter 3 regarding the public offering of digital tokens under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018)

b) Are digital tokens for which there is no legal requirement to be traded on a digital asset exchange under the law on digital asset businesses

1. In the case where digital tokens offered for trading on a digital asset exchange were acquired at a price lower than the public offering price, a contract or agreement must be arranged to stipulate a silent period prohibiting the sale of such digital tokens for a period of not less than 6 months from the date the digital tokens are delivered to investors, if such tokens are brought to trade on the digital asset exchange before the expiration of such period.
2. In the case of digital tokens that have been permitted by the SEC Office to be publicly offered, the selection criteria must be consistent with the Notification of the Securities and Exchange Commission regarding the public offering of digital tokens.
3. In the case of digital tokens that are not required to obtain permission from the SEC Office for public offering, or cryptocurrencies, the selection criteria must at least cover the following matters:
   1. Characteristics of the digital token or cryptocurrency
   2. Clarity of the business plan, project, or undertaking
   3. Rights of digital token holders or cryptocurrency holders
   4. Mechanisms for enforcement of rights, smart contracts, disclosure of source code, or other documents with comparable details
   5. White paper or other documents with comparable details
   6. Credibility of the digital token or cryptocurrency, with reference to reliable sources
   7. Reasonable grounds for suspicion that the digital token may be intended to circumvent the rules governing the public offering of digital tokens
4. Digital assets with any of the following characteristics must not be offered for trading on a digital asset exchange.
   1. Illegal digital assets
   2. Digital assets with transaction data concealment
       (privacy coins) having any of the following characteristics:
      1. Concealment of information on senders, recipients, and transfer amounts
      2. Granting rights to holders to control the concealment of information on senders, recipients, or transfer amounts
      3. Other characteristics as announced by the SEC Office
   3. Utility tokens whose primary purpose is for consumption, or which serve as a certificate or represent any right document
5. Digital assets that meet the conditions under Appendix 3 of the Notification of the Securities and Exchange Commission No. KorThor. 19/2561 re: Rules, Conditions, and Procedures for Digital Asset Business Operations (Consolidated Version), Clause 39/1 (1), shall be delisted as follows:
   
   1. Where the digital token issuer fails to comply materially with the provisions specified in the white paper and relevant rules, in cases where the digital token issuer is the digital asset exchange operator that provides trading services for such digital tokens itself, or is a related person as follows:
      1. Directors, executives, or persons having controlling power over the business
      2. Spouses or persons living together as husband and wife of the persons under (7.1.1)
      3. Juristic persons over which the persons under (7.1.1) have controlling power
      4. Parent company, subsidiary, or associate company, in accordance with the characteristics prescribed in the Notification of the Securities and Exchange Commission concerning the determination of characteristics of entities within the digital token offeror’s group, mutatis mutandis.
      5. Where the digital token issuer fails to comply with the rules prescribed by the digital asset exchange operator.