Cryptocurrency exchanges are welcoming a new wave of regulated licensing structures, with several jurisdictions around the world now recognising the benefits of offering licenses to cryptocurrency businesses.
Thailand released their licensing system for cryptocurrency exchanges a matter of weeks ago, and as of this week, reported that it has received as many as 20 applications from companies hoping to set up domestic cryptocurrency exchange businesses in the Asian country.
Licensed by Thailand’s Securities and Exchange Commission, the new regime was introduced on July 16, reflecting strong early demand amongst operators for the scheme. It follows new regulations introduced last month governing the cryptocurrency sector, in an attempt to introduce a certain legal basis for crypto and ICO transactions.
Secretary-General of the SEC, Rapee Sucharitakul, said that the market for cryptocurrency in Thailand, coupled with the new regulatory framework, was proving particularly appealing to potential operators.
“Many companies interested in opening digital asset exchanges have said digital assets and cryptocurrency trading in the Thai market are quite active,” according to Sucharitakul.
The new cryptocurrency laws introduced a legal basis for ICO transactions for the first time, albeit limiting the selection of coins that can be used as payment for ICOs. Recognising Bitcoin Cash (BCH) as one of the legitimate currencies of choice, the measures have already proved popular within the local crypto community.
Alongside the 20 applicants for crypto exchange licenses, Rapee said there were as many as 50 separate ICO issuers interested in securing licenses to raise money, with five thought to be at an advanced stage in that process.
The scheme chimes with a similar approach to creating a regulated cryptocurrency space in parts of the Philippines, where the central bank opted to grant permission to two new cryptocurrency exchanges to operate within the territory.
The developments continue to position Asia as one of the most proactive regions of the world around cryptocurrency regulation, a trend that began with Japan’s recognition of some cryptocurrencies as legal tender.
The resulting growth in the respective cryptocurrency sectors across the continent should serve as a sign to other jurisdictions weighing up whether to back a regulated system for cryptocurrency businesses in their own markets.