Thailand’s ICO Regulations will Take Effect This Month, Legalizing 7 Cryptocurrencies
The Securities and Exchange Commission (SEC) of Thailand announced on Wednesday that regulations on ICOs will take effect from July 16 according to Reuters.
The SEC said in a statement that the digital token issuers must be registered under Thai law and will be able to provide unlimited amount of such assets to institutional investors, ultra high net worth investors, venture capital and private equity firms.
However, the SEC also stipulates that issuers can only offer up to 300,000 baht (US$9,050) in tokens to retail investors.
According to the Bangkok Post, all market participants, including the ICO issuers, digital currency exchanges, brokers and traders involved in digital asset transactions, are required to register with the SEC within 90 days of the effective date.
Participants in the digital asset business must also obtain approval from the Ministry of Finance. According to the publication:
“Sellers of unauthorized digital tokens and those setting up unauthorized seminars to solicit cryptocurrency investment will be fined no more than twice the value of the digital transaction or at least 500,000 baht (US $15,619.88). They could also face a jail term of up to two years.”
The SEC will also allow seven cryptocurrencies to be used in ICO activities, which includes bitcoin, bitcoin cash, ethereum, ethereum classic, litecoin, ripple and stellar. All ICO projects in the country are to be denominated in either Thai baht or these 7 cryptocurrencies.
Thai has also passed a new law defining digital assets as both currencies and securities which depending on their intended purpose this week. Thailand has also launched governance rules to manage digital asset activities that allow entities to participate, including digital asset exchanges, digital asset brokers, digital asset transactions, and other digital asset-related activities.
The Ministry of Finance of Thailand will be responsible for the registration and licensing of cryptocurrency exchanges.
Apisak Tantivorawong, the Thai Finance Minister, said in March that the finance ministry will impose 15% withholding tax on gains from cryptocurrency trading and there will also be a 7% value-added tax while general investors will be exempted.