The Securities and Exchange Commission (SEC) – Thailand’s regulatory body for the cryptocurrency – has said to have approved the very first portal of the country for the initial coin offerings (ICOs). These kinds of portals can be very helpful in accomplishing a number of tasks related to coin offerings some of which include screening the tokens applications, ensuring the consistency of the project in line with its white paper, and verifying whether the offering has given due diligence to the know your customer (KYC) clause.
According to the news on the Bangkok Post, an official meeting of the board of directors of Thailand SEC has given the nod to the first ICO portal in the country. This announcement is yet to be reflected on the official website of SEC. However, what provides credence to this report is the acknowledgment coming from Archari Suppiroj, Director of Financial Technology at the commission. According to Suppiroj, the first ICO portal of the country has been finalized and in the process of getting approval from the various departments of the government including the Ministry of Commerce.
ICO Approval Process
According to the directive of SEC, the party interested in issuing ICO first needs to get approval from the ICO portal and then apply to the SEC for further approval. The website of the SEC has a description of the conditions for becoming an eligible ICO issuer. The regulations allow equity funds and venture capitalists to invest in the ICO project besides allowing individuals with a high net worth to be part of the project. The investment limit for the retail investors has been set at 300,000 baht/ICO project.
According to the information on the Bangkok Post, Suppiroj said they had a consultation with around seven to eight companies for ICO portal; however, in the end, one foreign organization had been selected for operating the ICO portal. There hasn’t been any specific information about which company has been finally selected for the project. That said, for now, the only approved foreign company listed on Thailand SEC is Bitherb Co. Ltd. which is a joint venture between Asia Herb Association Bangkok Co. Ltd. and Bitpoint Japan. Recently, Bitpoint Japan had revealed that it was pursuing the SEC for obtaining a license to operate ICO in the country. This leaves little space for doubt about which foreign organization has been selected for operating the ICO portal in Thailand. Thailand has been extraordinarily active in the domain of cryptocurrency and blockchain. The country has well laid out rules for regulating digital assets and is using cryptocurrency to increase financial inclusion in the country. In fact, many countries are keen to adopt the crypto regulation model of Thailand and seeking details in this regard. The adoption of cryptocurrency has bode well for the financial health of a country as it is further looking forward to enhancing its revenue coming from the cryptocurrency and blockchain sector. Thailand has shown a very good balance in adopting a middle path between providing a crypto friendly regulatory environment and protecting the interest of investors.