Policymakers of Thailand present initial coin offering legislation

Policymakers of Thailand present initial coin offering legislation
Jul 6, 2018 by Rico Wise

The Thailand SEC, which is responsible for regulating domestic capital markets, has established a legislator framework that deals with ICOs. The newly adopted policies enter into force later this month.

Pursuant to the adopted regulations, those who want to issue initial coin offerings must perform legal registration of their companies in Thailand, after which the Commission makes a decision on whether to approve such company or not. One of the requirements is to have a registered capital in the amount of 5,000,000 baht (Thailand’s national currency), which equates to approximately 150,000 US dollars as of press time.

The regulations also establish a value limit for digital currencies offered during the token sales, which constitutes approximately 9,050 US dollars for retail financiers. With that, the initial coin sale operator will have the permission to offer their coins to institutional financiers, VCs and private equity companies in an unlimited amount.

It is worth noting that the operators are permitted to make their profit from payments only in 7 digital currencies approved by Thailand’s SEC, which are: BTC, ETH, XRP, BCH, ETC, LTC and XLM. Apart from that, the ICO operators are permitted to accept investments in the national currency.

The Commission has also mandated the issuers to provide their financing prospectus for the initial coin offering, as well as financial statements and the source code for the relevant authorities to analyze and ensure compliance with the established legislation of Thailand and prevent illegal activities.

Overall, these regulations have been adopted as part of the process, in which Thailand’s government intends to facilitate an approach friendly to digital currencies and token sale markets. This process has been commenced earlier this spring, in the wake of necessity for regulating domestic digital currency and ICOs.

Currently, the Thai SEC anticipates nearly 50 initial coin offerings to apply for operation within Thailand’s jurisdiction, having already given green light to five projects.