Thailand Officially Announces Rules for Token Issuers, Portals, and Investors

Economy & Regulation

The Thai Securities and Exchange Commission (SEC) has formally declared its regulations for first coin offerings (ICOs). The rules define prerequisites for ICO portal sites, issuers, and who can put money into tokens. The Commission has also supplied a collection of infographics to describe regulations.

The Thai SEC formally declared Wednesday the regulations for ICOs, that will take effect from July 16, according to local media.

The ICO regulations fall below the Digital Asset Management Act BE 2561 which modulates cryptocurrency from the nation, Thai Rath paper reprinted Mr. Rapee Sucharitakul, Secretary-General of those Thai SEC, describing.

Along together with the statement, the Commission has released a string of infographics to spell out the regulations that are shown below.

Rapee comprehensive, as mentioned by Prachachat Turakij, “those wanting to launch an ICO must undergo screening from an ICO portal. So, initially, the SEC will first approve ICO portals.” A stage wanting to function as a ICO portal has to submit an application for acceptance from the Commission that may take up to 90 days. “Once the portal has been approved, the SEC will begin to consider applications for the issuance and sale of digital tokens,” he explained.

An ICO portal candidate has to be a Thai firm with registered capital of 5 million baht (~US$150,636). Citing which ICO portals need to recognize “investors’ status, identity, and risk-taking ability,” that the Bangkok Post elaborated:-LRB-**************)

ICO portals’ management structure and employees have to be adequate for company operations. They will also be needed to be ready to appraise ICO issuers’ business plans and the supply arrangement of electronic tokens in addition to perform checks to make sure that computer code, or source code, matches with the revealed information.

Furthermore, the information outlet offered Mr. Rapee stating, “the SEC is pleased to immediately discuss details with those who would like to be approved as ICO portals in order for them to be prepared for the regulatory framework.”

Anyone desiring to establish a ICO in Thailand will first must get an endorsement in an ICO portal prior to employing with the SEC.  Upon getting an endorsement in the ICO portalsite, a prospective issuer may then apply together with the SEC, providing details of the ICO. The SEC may take around 60 days to make a choice.

In an announcement to Reuters, the Commission clarified that “issuers of digital tokens must be a company registered under Thai law and will be able to offer such assets of an unlimited amount to institutional investors, ultra high net-worth investors, venture capital and private equity firms,” adding:-LRB-**************)

Issuers of these tokens can take baht or cryptocurrencies, such as bitcoin, bitcoin money, ethereum, ethereum classic, litecoin, ripple as well as leading.

Who Can Invest at ICOs in Thailand

The SEC has also set rules on who will invest in ICOs, split them into four classes. The first includes institutional investors. Ultra-high net-worth investors constitute the next category, which the SEC defines as retail investors with net value of 70 million baht (~$2.1 million) or people with investments of 25 million baht (~$752,785). The third category contains venture capitalists and private equity companies. The last category includes other retail investors, however their investment is capped 300,000 baht (~$9,034) per individual and per ICO undertaking, “or no more than 70% of total value of offered tokens,” that the Bangkok Post added.

As for taxation, the nation’s finance ministry, Mr. Apisak Tantivorawong, stated in March which “the finance ministry will impose a 15% withholding tax on gains from digital tokens and cryptocurrency trade,” Reuters cautioned, adding that”there are also a 7 percent pre-tax taxation, but overall investors will probably be exempted.”

What would you think about Thailand’s ICO principles?

Images courtesy of Shutterstock along with also the Thai SEC.

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