The Thai Securities and Exchange Commission (SEC) revealed on Friday the details of the cryptocurrencies and initial coin offering (ICO) regulations which will serve as a measure in the digital asset market.
This announcement follows the two royal decrees which were published on May 14, addressing all crypto-related issues and giving the Thai SEC the responsibility of regulating the crypto space in the country.
According to a local news outlet, the new policies which have gone through several channels of public hearings were approved during the meeting held on June 7 and are set to roll into effect this month.
The regulations cover cryptocurrency exchanges, ICOs, dealers, brokers, and other crypto related firms enlisted by the Finance Ministry. These participants must receive approval to conduct crypto business from the Finance Ministry and must also register with the SEC within 90 days of the effective date.
The Thai SEC expects ten different firms to apply for licenses with about five being crypto exchanges and the others dealers and brokers in the crypto market. The licence application window will be open until August 14.
According to the announcement, only a limited number of cryptos will be allowed as trading pairs for initial coin offerings (ICOs).
“The SEC will allow seven cryptocurrencies, used for initial coin offerings (ICOs), to be traded as trading pairs. They are bitcoin, ethereum, bitcoin cash, ethereum classic, litecoin, ripple, and stellar,” SEC deputy secretary-general, Tipsuda Thavaramara said.
The seven crypto were approved as trading pairs because they do not promote transaction privacy in the cryptocurrency ecosystem.
According to bangkokpost, before an ICO can be launched, the issuers must first submit a detailed report covering the type of tokens being issued to the public and investment information to the SEC for approval.
Any market participant that is guilty of selling unauthorized digital tokens or setting up unauthorized summits to solicit crypto investment will be subjected to a fine of at least 500,000 baht ($15,653) and would also be sentenced to jail for up to two years.
The details of the regulation also include licensing fee. Only registered companies are allowed to apply for license. Crypto exchanges applying for a license will pay an upfront fee of 5 million baht ($156,533) which is divided into 2.5 million baht ($78,267) each for token distribution and crypto operations.
Do you think the Thai SEC is moving towards the right direction with this regulation?