Thailand officially recognizes ICO investments
Thailand’s SEC has published regulatory guidelines for ICO investments and digital token issuance. They established a series of specific requirements for coin issuers, investors and portals.
The new rules will be enforced on the 16th of July as part of the Digital Asset Management Act BE 2561 which is planned to regulate cryptocurrencies within the country. Here are the most important aspects of the ICOs regulation:
Thailand regulators introduced ICO Portals. Every coin issuer will undergo an evaluation by approved ICO Portal. These portals will assess ICO issuers’ business plans, the distribution structure of their digital tokens and the involved risks. Furthermore, portals will perform additional checks to ensure that the coin issuer’ source code, matches the disclosed information.
Cited by Reuters, the commission stated that:
Every ICO portal must be a Thai company with registered capital of at least 5 million baht (around US$150 636).
After acquiring an approval from an ICO portal, every future ICO issuer will need to apply with the SEC, supplying details of the ICO. The SEC can take up to 60 days to make a decision. Additionally, Each ICO will be allowed to offer an unlimited number of tokens.
Again cited by Reuters, the commision states:
Issuers of digital tokens must be a company registered under Thai law and will be able to offer such assets of an unlimited amount to institutional investors, ultra high net-worth investors, venture capital and private equity firm
Investors can use only seven approved cryptocurrencies: Bitcoin, Ethereum, Ripple, Bitcoin Cash, Ethereum Classic, Stellar and Litecoin. As for the fiat options – currently, only Thai baht will be accepted. They introduced four investors groups: institutional investors, ultra-high net worth investors (defined by the SEC as retail investors with net worth of at least 70 million baht (around $2.1 million) or those with investments of at least 25 million baht (around $752 785), venture capitalists and private equity firms and finally retail investors. For retail investors, a token value cap is 300.000 baht, or $9,050.
While Thai’s crypto market is not as famous as in other Asian countries it is, in fact, increasing its size and influence dramatically. Currently, there are 11 exchanges in Thailand, which offer fiat to crypto transactions. In addition, Thailand is a famous tourist destination, especially around the crypto world. Many early investors from Europe and USA are currently retired among the beautiful beaches of Thai’s hundreds of islands. The newly announced regulatory framework is another huge step in making Thailand a global center for cryptocurrency commerce and influence. Let’s hope other countries will follow Thailand’s example and finally legalize crypto and we can all go on this beach and live happily ever after…