Former Thai Finance Minister Supports Crypto Regulation

News, Regulation | March 12, 2018 By:

Korn Chatikavanij, chairman of the Thai FinTech Association (TFA), said that his organization supports the Thailand Securities and Exchange Commission’s plan to regulate all aspects of cryptocurrencies.

In an interview with the Bangkok Post last week, Chatikavanij, who previously served as the country’s finance minister between the end of 2008 and mid-2011, said that “the TFA supports the SEC in regulating all types of digital assets because the market regulator has been monitoring these developments and is equipped with a better understanding of this fund-raising method than other public organizations.”

“I agree with the Finance Ministry’s [view] of letting the SEC be the only organization governing digital assets, because it already oversees securities and has a profound understanding of digital assets,” he said. “Digital assets are new for everyone, and no one knows everything [about them], so all parties should be open-minded, learn about them, and have proper rules and regulations.”

Public hearings on the initial coin offering (ICO) regulatory framework, drafted by the Thai SEC, recently completed their last round on January 22 after being extended twice. One possible outcome of the review process is a plan to apply existing “investment participation” rules to token sales, which would impose capital requirements on those conducting ICOs within Thailand.

Rapee Sucharitakul, secretary-general at the SEC, said following the completion of the public consultation period and a joint meeting with government officials last week that the regulator’s board of directors and related agencies agreed that a royal decree should be enacted within the next month to empower the SEC to regulate all aspects of cryptocurrencies.

“This special decree will encompass every dimension of regulating digital assets, such as ICOs and cryptocurrencies, together with setting up a regulatory framework for businesses opting to raise funds via ICOs, businesses acting as platforms for ICO trading in the secondary market and establishing investor criteria,” said Sucharitakul.

The news came after the Bank of Thailand, the country’s central bank, banned financial institutions from doing any business involving cryptocurrencies.