Thai SEC Seeks To Relax Regulations On Private ICOs

ICO News, News, Regulation | December 21, 2018 By:

Thailand’s Securities and Exchange Commission (SEC) is planning to conduct a public hearing to ease the country’s regulation for initial coin offerings (ICO).

In May of this year, the government of Thailand issued a royal decree to regulate the local cryptocurrency markets. Under the law, domestic crypto exchanges, ICO operators, and independent crypto brokers and dealers are required to register with the SEC within 90 days of the law taking effect. Regarding ICOs, the mandate is applied to all token sales, including pre-ICO and private sales.

The SEC said that existing regulations are barriers for ICO fundraising in practice, so they are planning to relax certain rules for token sales made through private placement to specific investor groups. The objective is to allow private ICOs to proceed without the need to submit registration statements and a draft prospectus.

“The proposed guideline is an attempt to find greater equilibrium in the regulatory process and reduce regulatory impediments, while taking risk management and investor protection into account,” said Tipsuda Thavaramara, Thai SEC’s deputy secretary-general.

According to the SEC, over a 12-month period, each token sale will be limited to 50 investors, while the investment limit for individual investors will be capped at 20 million baht ($611K USD). There is no limit to the number of investors or fundraising amount for institutional investors, private equity firms, venture capital and ultra-high net worth investors.

“The proposed criteria may not be fully completed, but it is a starting point for businesses to proceed accordingly,” said Tipsuda.