ICO Regulation In Thailand To Begin On July 16br>
Thailand’s Securities and Exchange Commission (SEC) has announced that the regulatory framework for initial coin offerings (ICO) will come into effect on July 16.
Under the new regulatory framework, ICO operators are mandated to file an application for approval with the regulator before starting a token sale. “ICO portals,” online marketplaces where potential ICO issuers can operate their token sales, will be in charge of selecting applicants to pass to the SEC for a final screening. Portals will evaluate ICO issuers’ business plans and the distribution structure of tokens as well as perform checks to ensure that computer code, or source code, matches the disclosed information.
The SEC also confirmed that ICO issuers must be companies established under the Thai legal jurisdiction and have registered capital of at least 5 million baht ($156,625 USD). Approved ICO issuers will be allowed to offer an unlimited number of tokens to institutional investors, venture capital and private equity firms, and ultra-high net-worth individuals. However, there is a token value cap of 300,000 bath ($9,050 USD) for retail investors. ICOs are only permitted to receive payment for issued tokens in baht or seven cryptocurrencies, including bitcoin, Bitcoin Cash, ethereum, Ethereum Classic, Ripple, Litecoin, and Stellar.
“Despite the regulatory framework’s standardization of ICOs and enhancement of investors’ protection against fraud, an approved sale of digital tokens does not guarantee the success, price or return from swaps, so investors should study information thoroughly and accept investment risks before making an investment,” said SEC secretary-general Rapee Sucharitakul.