TheTokener recently reported about the way Thailand regulated ICOs. New ICO laws brought a lot of attention and criticism. Opinions ranged from the ones that stated that ICOs are a complete scam to others who were delighted that Thailand finally has some sort of regulation. After ICO regulation, the question about digital assets regulation has risen. This is not a surprise as the huge global debate is happening on the question of whether digital assets are securities or not? The answer to this question will determine the nature of the new digital assets laws. Thailand solved the question in an interesting manner by stating that digital assets will be defined as both currencies and securities. Their respective use will determine whether the law will look at them as currencies or securities.
Thailand’s New Crypto Law
This definition arises from the new Digital Asset Business Decree law. This law defines “digital tokens” as rights to receive specific goods or participate in an investment, while “cryptocurrencies” are defined as a medium of exchanging goods, as the Bloomberg reports. Also, certain rules were set by the government which will govern all future digital asset activities. Those rules are in regards to digital asset trading center/exchange, digital asset brokerage, digital asset trading and other activities related to digital assets.
Thailand’s government also incorporated a new tax law which will enable the government to get some financial benefit from the growing crypto industry. It is also stated in the law that all crypto exchanges must be registered and licensed by the Ministry of Finance. The similar thing has happened with the ICO regulation so it is not hard to figure out that Thailand's Ministry of Finance will have complete control over the future cryptocurrency endeavors in the country. People have been divided again as some dislike the idea of so many regulations, while others dislike the idea that cryptocurrencies are getting legitimacy with them.
Archari Suppiroj, the director of Thailand SEC’s fintech department, has stated that they are trying to find some kind of balance between people who use cryptocurrencies for gambling and those who see crypto as something evil. She also said that regulators are looking to the worldwide trends regarding crypto regulations and will try to make them crypto friendly. When the regulations are too strong people tend to find other markets with favorable laws and they do not want Thailand to lose crypto investors.
Every crypto related business in Thailand, whether it is an ICO, crypto exchange or other, will have to comply to this newly formed rules and have a clear business plan before getting in any crypto businesses. Certainly, Thailand’s crypto market outlook is much clearer and legitimate than before. Nevertheless, the price to pay for such a market was a strong government supervision of everything crypto related. Whether that is a good thing remains to be seen.
What do you think about Thailand’s new cryptocurrency laws? Do you think strong government supervision is a good thing for cryptocurrencies? Share your opinion in our social media!