ICO Licensing Rule In Thailand Attracts 20 Crypto Exchanges

ICO News, News, Regulation | August 9, 2018 By:

Thailand’s Securities and Exchange Commission (SEC) said that the new licensing rule for initial coin offerings (ICO) and crypto exchanges has seen increased interest from companies just weeks after the regulatory framework went into effect.

The regulatory framework for ICOs and businesses undertaking crypto-related activities took effect on July 16 after a royal decree on the topic was made public in May. Under the new rules, ICOs and crypto exchanges are mandated to file an application for approval with the regulator before starting a token sale or trading operations. After receiving the applications from interested firms, the SEC will forward the documents to the Finance Ministry within 90 days. Thereafter, the Ministry has 60 days to make a decision whether to approve a license.

In a news report from Bangkok Post, SEC secretary-general Rapee Sucharitakul said that about 50 ICO projects have expressed interest in obtaining licenses to conduct token sales in the country, but the SEC remains uncertain whether all of them will be given proper credentials to raise funds. He said that three out of five ICO portals, online marketplaces where potential ICO issuers can operate their token sales, have already submitted their applications to the SEC.

“The most difficult task for ICOs is creating the white paper that covers details of an ICO investment project, including product description, digital token distribution and how the raised funds will be used, for both Thai and foreign investors,” Sucharitakul said.

Additionally, Sucharitakul said a total of 20 crypto exchanges have also applied for licenses. As part of the licensing rule, companies seeking to offer crypto exchange services must have paid-up registered capital as stipulated, a well-prepared work system and sound financial status. The directors, executives and company shareholders must also have SEC approval.

“License approvals are being processed,” Sucharitakul said. “Many companies interested in opening digital asset exchanges have said digital assets and cryptocurrency trading in the Thai market are quite active.”