According to the Bangkok Post, the Thai Security and Exchange Commission already issued regulatory guidelines for market participants in digital assets.
The regulatory was meant for regulating the digital assets and transactions to ensure unnecessary fraud and ponzi schemes. The regulatory would be expected for 10 cryptocurrency exchanges while others can be firms and brokerages. Even the initial coin offerings (ICO) aren’t being left out, too, from this guideline as well as Bitcoin, Ethereum, Bitcoin cash and Ethereum classic.
During the course of the meeting among the Thai SEC, they agreed that the digital assets and digital tokens were defined as cryptocurrencies after they came with several rounds of public hearings. They used credibility and consensus as part of their assessing criteria for a digital token and digital currency.
With the public issue of guidelines by the Thai SEC, they are expecting digital currency assets firms, brokerage, ICO issuers and other cryptocurrencies to be registered and will be assessed by SEC within 90 days. Also, the participants must register with the authority to get an approval by the Ministry of Finance when they want to conduct a digital asset business.
An ICO issuer must state clearly the type of token being issued and investment information to receive approval from the SEC. However, the ICO investment will be a cap at 3000,000 baht for retail investors or not more than 70%. Also, they are allowed to offer institutional and ultra – high – net – worth – investors with an unlimited investment amount. Furthermore, the ICO portals are required to look for at least one year of ICO with a minimum registered capital of 5 million baht.
Many governments were facing a huge problem of states’ revenue since the collapse of oil and other commodity prices. To add to the fiscal burden, the rise of digital economy, like ECommerce and Marketplaces, the world governments are looking for ways to sustain and increase their revenue to make it more sustainable as being the UN Sustainable Development Initiative.
My two cents….
It was a matter of time before this happened. You could take one side and say that it’s to help or hurt the crypto markets here in Thailand. Nonetheless, banks are wanting in on the pie, as well as everyone else such as governments. Regulations are being implemented and that’s probably why Cryptomarkets are heading down the pipe….for now.