The Thai Security and Exchange Commission, which regulates the financial markets in the country has finally announced its regulatory framework for Initial Coin Offerings. This means that cryptocurrency investors in Thailand will have some clarity over what is allowed and how they can trade with some serenity. The laws will come into effect on July 16.
Under these guidelines, ICO issuers are required to have a company that is registered in Thailand, and that is also approved by the SEC. The minimum registered capital for such a company will be five million Thai baht or approximately USD 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 300,000 baht or around USD 9,000 according to the Thai Securities and Exchange Commission.
Furthermore, ICO issuers are only allowed to receive payments in seven cryptocurrencies. These are bitcoin, ether, ripple, bitcoin cash, ethereum classic, stellar and litecoin. 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 who 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 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 this year 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.