Thailand will implement a new law on Initial Coin Offerings (ICOs) starting on 16th July.
As reported on 4th July by the Thailand Securities and Exchange Commission (SEC), the new law will take effect on 16th July. Thus, Thailand will become one of the first destinations in which ICO projects are launched in concordance with a regulated framework. According to the SEC, companies that want to launch an ICO are required to register with the agency in order to get authorization.
“Mr. Rapee Sucharitakul, Secretary General of the Securities and Exchange Commission (SEC), said that the SEC issued the announcement concerning the issue and offer. Sell digital tokens by ICO process. And approval of the portal. Under the Digital Asset Management Act of BE 2561 (BE 2561), it will come into force on July 16, 2011,” reported the SEC.
Even so, the agency will not primarily analyze the requests received from “individual ICO projects“, but from so-called “ICO Portals“, which focuses on the online marketplace where ICO individuals are able to manage their token sale. All ICO portals’ applicants are required to be Thai companies.
“When an approved ICO portal The SEC will begin to consider applications for the issuance and sale of digital tokens for ICOs.”
The new law comes as a result of one-month public hearings and legislative analyzes on regulating the crypto sector in the country. The authorities even announced a “royal decree” in May 2018. As stated in the announcement, applicants must deposit a minimum social capital of 5 million baht, or $ 150,000. ICO portals are also required to match the structure of crypto-related projects from an organizational and technical point of view.
The Thailand Securities and Exchange Commission (SEC) allows ICO issuers to use exclusively Thai’s national currency baht and seven cryptocurrencies in token sale: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Ripple (XRP), and Stellar Lumens (XLM).
Mr. Rapee Sucharitakul, Secretary General of the Securities and Exchange Commission (SEC) told:
“The SEC welcomes the request for an ICO portal. Come to discuss with the SEC in detail immediately. To prepare for the application for approval when the declaration comes into force. And when the SEC is approved by the SEC, the SEC is ready to consider licensing the ICO, even though the criteria will help set the standard for ICs. O! And increase the screening process to protect investors from being deceived. But being licensed to offer digital tokens from the SEC does not guarantee the success of a fundraising project, the price or return is likely to be a loss, or there may be a digital tokens channel. Ltd Investors should study the information thoroughly and be sure. Can accept the risk involved before investing.“