Thailand SEC Cryptocurrency Regulations Set, Approves 7 Coins & Covers ICO Restrictions
An odd occurrence has taken place in Thailand’s cryptocurrency industry. Not only has the Thai Securities and Exchange Commission released a new regulatory framework concerning cryptocurrencies, but it has also legalized 7 various cryptocurrencies that have complied with the regulations.
The first initial currencies are being released for the purpose of initial coin offerings (ICOs). The currencies will be traded as pairs and they include Bitcoin, ethereum, bitcoin cash, ethereum classic, Litecoin, ripple, and stellar.
Further, the Thai SEC is expecting ten firms to apply for licensing, some of which may be crypto exchanges, and others, crypto brokers and dealers. Bear in mind, these currencies must register with the SEC within 90 days of the effective date and the participants must receive approval from the finance ministry. There is also an upfront fee of 5 million baht, which is the equivalent of $156,194. The funds are then separated into 2.5 million for the distribution of each token and for the operations of cryptocurrencies.
There are also annual fees involved – approximate 0.002% of the total trading volume for cryptocurrency exchanges, and 0.001% of trading volume from brokerage firms. There are also minimum fees involved. A publication concerning the matter stated,
“Registered capital for digital exchanges is stipulated at 50 million baht for a centralized exchange and 25 million for brokers, while a decentralized exchange is at 10 million and a decentralized broker is at 5 million.”
ICO restrictions are another issue. According to a recent publication, token issuers
“Must state clearly the type of tokens being issued, as well as investment information,” It should also be noted that “sellers of unauthorized digital tokens and those setting up unauthorized seminars to solicit cryptocurrency investment will be fined no more than twice the value of the digital transaction or at least 500,000 baht. They could also face a jail term of up to two years.”