Thailand to Adopt Law on Cryptocurrencies and ICO

June 12, 2018

Thailand’s Securities and Exchange Commission (SEC) has published full version of a draft on cryptocurrencies and ICO that was initiated by the Commission on May 14 this year. As local mass media says, new regulations are to enter in force during the next month.

Tipsuda Thavaramara, deputy secretary general at SEC, has reported, the law includes rules and regulations for ICO industry and conducting trade operations at corresponding exchanges and other platforms approved by the country’s Ministry of Finance. Thavaramara also added:

“The SEC will allow seven cryptocurrencies, used for initial coin offerings (ICOs), to be traded as trading pairs. They are bitcoin, ethereum, bitcoin cash, ethereum classic, litecoin, ripple, and stellar.”

“Some of the main criteria used by the SEC to assess cryptocurrency trading pairs [are] consensus credibility and cryptocurrency liquidity”, local TV channel reports.

The Thai Rath publication notes, another important reason for choosing specific cryptocurrencies is lacking of privacy.

“All market participants, including ICO issuers, digital exchanges, brokers and dealers involved with digital asset transactions, are required to register with the SEC within 90 days of the effective date…The participants must also receive the Finance Ministry’s approval to conduct digital asset business”, Bangkok Post says.

According to the same publication, SEC expects about 10 companies to file license applications for crypto activities soon with half of them owning crypto exchanges while the other one being crypto brokers and dealers. The deadline for applications is August 14, 2018.

As the Finance Ministry spokesmen state, only the companies registered in Thailand have the right to lodge applications for crypto license within the country.

Prior to this each business that renders crypto services will have to pay fee for application: 5 million baht (~$156,200) for exchanges, 2,5 million ($78,027) and 2 million baht (~$62,422) for brokers and dealers respectively.

An addition, according to the draft, annual fees will be imposed for Thai crypto companies: 0.002% of total trade volume for crypto exchanges and 0.001% for broker companies. Minimal commission for crypto exchanges will make 500,000 baht (~$15,619), 250,000 baht (~$7,810) for brokers while the maximum one will make 20 million (~$624,775) and 5 million baht (~$156,200) respectively.

Registered crypto exchanges and brokers are obliged to have minimum authorized capital of 50 million (~$1,560,550) and 25 million baht (~$780,275) respectively, while decentralized ones 10 million (~$312,110) and 5 million baht (~$156,055). But it hasn’t been specified how decentralized brokers and exchanges meet these requirements.

To get approval from SEC the companies issuing tokens “must state clearly the type of tokens being issued, as well as investment information”. ICO-portals must have authorized capital of at least 5 million baht (~$156,055) and monitor all allotted ICO for a year.

The size of investments for institutional investors will not be limited. For individuals the sum will not be higher than 300,000 baht (~$9,363), i.e. not higher than 70% of total cost of the offered ICO-tokens.

“Sellers of unauthorised digital tokens and those setting up unauthorised seminars to solicit cryptocurrency investment will be fined no more than twice the value of the digital transaction or at least 500,000 baht [~$15,619.88]. They could also face a jail term of up to two years”, the draft says.

Comments

Никто ещё не оставил комментариев. Желаете быть первым?