Thai SEC Announces Regulations for ICOs
The Security and Exchange Commission of Thailand has enacted new rules relating to regulation of Initial Coin Offerings (ICOs). This rule is expected to take effect on 16th July, promptly making Thailand one of the first countries to allow ICOs in a regulated environment.
Under the new framework for regulation, an ICO issuer must have a registered company in Thailand which is approved by the SEC. Five million Thai baht or approximately USD 150,000, should be the minimum registered capital for such a company.
Furthermore, any party wishing to conduct an ICO must first file an application for approval with the regulator. Although ICO operators can offer an unlimited number of tokens to high net worth individuals, institutional investors as well as venture capital and private equity firms, there is a cap of 300,000 baht or around USD 9,000 on retail investors.
Only seven cryptocurrencies have been identified as the approved mode of payment. These are Bitcoin, Ether, XRP, Bitcoin Cash, Ethereum Classic, Stellar, and Litecoin. Thai fiat currency can also be used. The SEC has made arrangements for careful regulation of the ICOs. Therefore, they will require disclosure of the investment prospectus, financial records and statements, and the ICO’s source code, which needs to be mandated by the SEC.
They further wish to evaluate ICO issuers’ business plans and the distribution structure of digital tokens as well as inspect to ensure that computer code, or source code, matches the disclosed information.
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.”