ICO Licensing Rule to Take Effect in Thailand This Month
The Thailand SEC (Securities Exchange Commission) has said that a new rule to govern ICOs (Initial Coin Offerings) in Thailand will be enacted on July 16.
The financial regulator announced yesterday, June 4, that a new licensing rule will take effect in the country soon, making it one of the few countries to allow ICOs to operate in a regulated environment.
According to the announcement, any new entity intending to conduct an initial coin offering in the country must file an application to seek approval from the SEC before starting a token sale.
The regulator will first evaluate fillings submitted by initial coin offering portals, online “marketplaces” where organizers of an ICO can operate their token sale. The approved ICO portals will then be responsible for screening individual ICO projects, and then the applications of the selected individual projects will be assessed by the financial regulator for a final decision.
The new rule is the result of a month-long process involving several public hearings and debates on how to govern and regulate cryptocurrency and ICOs in the country. A royal decree concerning the topic was initially issued two months ago, before it was finalized to take effect on July 16.
According to SEC, ICO portals seeking approval must have registered businesses in the country with a minimum registered capital of $150,000. The portals must have the resources to evaluate an initial coin offering issuer’s project structure, source code, etc.
Not just ICO portals, but individual ICO projects must also have a registered business in Thailand, the regulator said. A hard cap of $9,000 has been put by the law on contributions individual retail investors can make for each ICO project.
Rapee Sucharitakul, the Secretary-General of the SEC, said in the announcement:
“Being licensed to offer digital tokens from the SEC does not guarantee the success of a fundraising project. The price or return could be negative. … Investors should study the information thoroughly and be sure they can accept the risk involved before investing.”
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