Business

Gerald Fenech

Thai SEC publishes new regulations covering cryptocurrency

Thailand’s financial markets regulator Securities and Exchange Commission (SEC) has finally announced its regulatory framework for initial coin offerings (ICOs). This means that cryptocurrency investors in Thailand will have some clarity over what is allowed and how they can trade tokens. The laws will come into effect on July 16.

Under these guidelines, ICO issuers are required to have a company registered in Thailand and approved by the SEC. The minimum registered capital for such a company will be THB5 million (~$150,000), according to a report that appeared in the Bangkok Post.

Each approved ICO operator will be allowed to offer an unlimited number of tokens to high net worth individuals, institutional investors as well as venture capital and private equity firms. Retail investors have to adhere to a cap of THB300,000 (~$9,000), according to the markets regulator.

Furthermore, ICO issuers are only allowed to receive payments in seven cryptocurrencies: Bitcoin Cash, BTC, ETH, XRP, ETC, XLM and LTC. Issuers can also accept fiat investments in Thai baht. There will also be an ICO portal process, which is required to be approved by the SEC.

The SEC will furthermore require that disclosure of the investment prospectus, financial statements and the ICO’s source code will have to be mandated by the commission. Plans of operation will also be scrutinized by the SEC, which will also evaluate ICO issuers’ business plans and the distribution structure of digital tokens as well as perform checks to ensure that computer code, or source code, matches the disclosed information, the report added.

Speaking to the Bangkok Post, SEC Secretary General Rapee Sucharitakul said: “The SEC is pleased to immediately discuss details with those who would like to be approved as ICO portals in order for them to be prepared for the regulatory framework. After the SEC approves an ICO portal, the token will be assessed for approval.”

These newly mandated guidelines are part of a wider approach by Thai authorities who began the legislative process to regulate the domestic cryptocurrency and ICO markets in March with two royal decrees. This development will give peace of mind to cryptocurrency investors in Thailand who can now operate within a fully legalized framework.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

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