Thailand Takes Proactive Approach And Solves the Currency vs. Security Problem
Thailand seems to be taking very seriously the cryptocurrency topic and how to properly regulate them.
Around the world, there are several regulators that are trying to understand how to better control virtual currencies. This time, Thailand passed a law that redefines digital assets as currencies and securities. In this way they were able to skip the problem of how to properly define cryptocurrencies.
With the so called Digital Asset Business Decree, regulators define two different types of digital assets: Cryptocurrencies, which allow individuals to exchange them for goods or services, and digital currencies, that have been defined as rights to take part in investments or receive specific goods.
The country has also set different rules for how to regulate crypto activities. They include digital asset trading exchanges, digital asset brokerages, digital asset trading, and other activities related to digital assets that are specified by the Minister of Finance.
Archari Suppiroj, director of Thailand’s SEC, said that the intention of the legislation is to strike a regulatory balance between those who are against virtual currencies and those who use them for gambling purposes. Moreover, she said that regulations need to be approached and regulated carefully because too strict rules may drive investors and development away.
But Initial Coin Offerings (ICOs), which had an incredible semester, will have to ask for a permission form the Ministry of Finance and formalize the process to be comparable to issuing equity or debt.
ICOs will also have to maintain 5 million baht ($155,000) of underlying capital. Other countries are still trying to understand how to better regulate the ICO market.