Thailand’s Security and Exchange Commission released last June 8 a new, comprehensive regulatory framework for the regulation of the country’s crypto market. The new law covers ICOs, approved crypto trading pairs and licensing fees for operators. The new laws are to come into effect later this June.
Last May 2018, Thailand ordered a ban on ICOs, while simultaneously waiving the planned 7 percent VAT on crypto transactions. The newly announced ICO regulations remove the ban and add strict conditions that future ICOs must meet. The SEC guidelines say that any company that wants to conduct an ICO must signify the type of token being issued as well as other important information.
The SEC decree also added that ICO portals must continue overseeing their offerings for at least one year while having a minimum base capital of at least 5 Million baht or about $157000. The new decree also said:
“Each ICO offering can be offered to institutional and ultra-high-net-worth investors at an unlimited investment amount, but the investment is capped at 300,000 baht for retail investment per person and per ICO project, or no more than 70 percent of total value of offered tokens.”
The Thai SEC has currently approved seven cryptocurrencies to be used as trading pairs. The approved cryptocurrencies are Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Ripple, Litecoin, and Stellar.
The SEC noted that these cryptocurrencies were selected based on their credibility and liquidity, among other criteria.
Ten firms are currently expected to apply for operating licenses, five of which are exchange platforms and the remaining five are broker-dealer firms. Crypto exchanges must apply for a license before Agust 14, 2018.
The new regulations also have a detailed breakdown of licensing fees for market operators. As required by Thailand’s Finance Ministry, all-digital currency exchange businesses have to be registered in Thailand. These companies will pay a registration fee of 5 million baht. The registration fee will cover token distribution and cryptocurrency operations.
The required minimum capital for a centralized exchange is 50 million baht or about $1.57 million. For decentralized exchanges and brokers, the minimum capital is pegged at 5 million baht and 10 million baht or $ 314000, respectively. The finance ministry also set the minimum capitals for brokers at 1 million baht and for dealers at 5 Million baht.