Thailand is one of the many countries that have started with Initial Coin Offering (ICO) regulations. When the ICO's first emerged, governments welcomed them with fear. It was basically the fear of the unknown. Nobody understood what an ICO really is. The immediate response from a lot of the governments around the world was to ban ICOs. Ban was followed by detailed analysis of an ICO phenomenon and the general ICO market. Results of these analyses are now beginning to reveal themselves in the form of lifting ICO bans.
As Bangkok Post reported Thailand’s Security and Exchange Commission (SEC) has released a paper considering the regulations of the country’s crypto space. New laws will come into effect in late June and they will uncover supervision details for the market participants involved in the digital asset trade.
New regulations will include seven cryptocurrencies that will be eligible for trade as a trading pair. This method of trade means that one type of cryptocurrency is exchanged for another. Criteria for choosing these seven was credibility and liquidity, SEC reports. These seven cryptocurrencies are Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Ripple, and Stellar.
Thailand government will include some licensing fees into the cryptocurrency business. Every digital currency exchange will have to be registered in Thailand. This was directly mandated by Thailand's Finance Ministry. The new fee for cryptocurrency operation and distribution will be 5 million baht (approximately 156,000 USD).
Thailand banned ICOs in May of 2018. Following a reacquiring trend among world governments, Thailand will now cancel the ICO ban with upcoming regulations.
New Thailand's ICO regulations will be very strict. First, a company that issues tokens must receive approval from the SEC. In order to get the approval, the company will have to clearly state the type of tokens being issued, and also all of the investment information. Every ICO could be offered for the unlimited amount to institutional and high net worth investors. For retail investors per person and per ICO project, investment is capped at 300,000 baht.
ICO portals will have to oversee their project for at least a year. Minimum required capital for ICO portals will be 5 million baht.
With these regulations, Thailand will ensure that the future ICO's are conducted in a legal and clear manner.
New regulations on the market will be followed by new adaptations in the ICO sphere. It could become much harder to launch an ICO, but companies that manage to get all the needed licenses may get better feedback from the investors. Interesting times are ahead of us. We might get a market almost without scam projects. Price to pay for that will come in a form of a heavy government supervision of an ICO projects. And, of course, the question is whether the ICO's could be launched and managed at the highest level with such a strong government supervision.
What do you think about the new Thailand regulations? Share your opinion in the comments.