Thailand SEC Releases New Cryptocurrency Market & ICO Regulations
Security and Exchange Commission of Thailand has released new regulations regarding ICOs, cryptocurrency trading pairs, and licensing fees.
This year in May Thailand prohibited ICOs when refusing the beforehand planned 7 percent VAT on cryptocurrency operations. New issued ICO regulations change the prohibition while determining exact and severe conditions that the future ICOs can encounter. As per the SEC resolution, firms seeking to hold an ICON have to indicate the token type as well as other appropriate information regarding the investment.
The regulation as well specified that ICO portals have to control their offerings for at a minimum one year while having a lowest base capital of 5 million baht ( $157,000 USD).
According to the order as of May 13, 2018 which says that virtual currencies must be classified as digital funds, the SEC of Thailand has adopted 7 cryptocurrencies which can be used as trading pairs. These cryptocurrencies are: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Ripple, Litecoin, and Stellar. These currencies were chosen based on their credibility and liquidity among other parameters.
It is expected that 10 firms will to apply for operating licenses – five of which are exchange platforms and the other five are broker-dealer firms. Cryptocurrency exchange platforms must apply for a license before August 14, 2018.
New regulations of Thailand cryptocurrency also include a complete breakage of licensing fees for market operators. Insofar as sanctioned by the country’s Finance Ministry, all-digital currency exchange businesses have to be registered in Thailand. Besides, such firms will pay advance registration fees of 5 million baht. The fee covers both token distribution and cryptocurrency operations.