SEC in Thailand Gives Green Light to First-Ever Initial Coin Offering (ICO) Gateway in the Country
The laws governing initial coin offerings (ICOs) have been debated around the world, often included in the regulations that govern cryptocurrency as well. In Thailand, the proposal of an ICO portal was brought to regulators. As of March 12th, the Bangkok Post is reporting that the securities regulator has approved the portal for launch.
This is the first ICO portal that the Thai Securities and Exchange Commission’s (SEC’s) board of directors has approved, and it will make it possible to screen ICOs and perform due diligence. The portal will also confirm the source codes of smart contracts while following the procedures outlined in Know Your Customer (KYC) protocols. A foreign entity is reportedly in a chart of the ICO portal as the operator.
Director of the fintech department of the SEC, Archari Suppiroj, told the local publication that this portal is still being finalized for official approval, which comes from several government agencies, like the Commerce Ministry. The ICO will require the digital asset royal decree to be available for a public offering. The ICO portal was originally planned for operational launch in November, and the ICO offerings would have started being approved by December.
Suppiroj said that he has seen the ICO market evolve over time, going from intangible ideas and projects to being supported and backed with physical assets. Though he did not give a time frame, Suppiroj added that there will eventually be criteria issued by the SEC that will make the tokenization of securities and other assets possible for companies.
At the end of 2018, the Thai SEC had spoken on their intentions to loosen the rules that bar ICOs, though they were clear that they planned to implement limits on participation. At the time, the general secretary of the Thai SEC, Tipsuda Thavaramara, said that the new guideline would be to find some balance in regulations and their enforcement while reducing the roadblocks in the way. Still, the risk management and protection of investors remained a priority to take into account.