The Thai Securities and Exchange Commission (SEC) has officially announced its regulations for initial coin offerings (ICOs). The rules specify requirements for ICO portals, issuers, as well as who can invest in tokens. The Commission has also provided a series of infographics to explain the regulations.
Thai SEC’s Official Statement
Thailand Officially Announces Rules for Token Issuers, Portals, and Investors
Rapee Sucharitakul.
The Thai SEC officially announced Wednesday the regulations for ICOs, which will take effect from July 16, according to local media.
The ICO regulations fall under the Digital Asset Management Act BE 2561 which regulates cryptocurrency in the country, Thai Rath newspaper quoted Mr. Rapee Sucharitakul, Secretary-General of the Thai SEC, explaining.
Along with the announcement, the Commission has published a series of infographics to explain the regulations which are shown below.
Mr. Rapee detailed, as reported by Prachachat Turakij, “those wanting to launch an ICO must undergo screening from an ICO portal. So, initially, the SEC will first approve ICO portals.” A platform wanting to operate as an ICO portal must apply for approval from the Commission which can take up to 90 days. “Once the portal has been approved, the SEC will begin to consider applications for the issuance and sale of digital tokens,” he clarified.
ICO Issuers
Anyone wanting to launch an ICO in Thailand will first need to obtain an approval from an ICO portal before applying with the SEC. Upon obtaining an approval from an ICO portal, a would-be issuer can subsequently apply with the SEC, supplying details of the ICO. The SEC can take up to 60 days to make a decision.
In a statement to Reuters, the Commission explained that “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 firms,” added:
'Issuers of such tokens can accept baht or cryptocurrencies, including bitcoin, bitcoin cash, ethereum, ethereum classic, litecoin, ripple and stellar'
As for taxation, the country’s finance minister, Mr. Apisak Tantivorawong, said in March that “the finance ministry will impose a 15% withholding tax on gains from digital tokens and cryptocurrency trade,” Reuters reiterated, adding that “there will also be a 7% value-added tax, but general investors will be exempted.”
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