Thai SEC Seeks Comment On Rules For Crypto Transaction Data

News, Regulation | March 12, 2019 By:

Thailand’s Securities and Exchange Commission (SEC) is seeking public comments on the proposed rules for data submission by crypto business operators and initial coin offering (ICO) portals.

In May 2018, the Thai government 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. Regarding ICOs, the mandate is applied to all token sales, including pre-ICO and private sales. To date, only four cryptocurrency businesses have been granted digital asset business licenses.

In a recent press release, the SEC announced that it is now aiming to promote a clear understanding and a standardized protocol for monitoring and supervision of crypto businesses, and to reduce the necessity for case-by-case data submission.

According to the SEC, cryptocurrency businesses deploy different data types and structures in their business operation, which is why the regulator is proposing draft rules related to preparation and submission of data and information according to specific, standardized formats to facilitate ICO portals, digital asset dealers, brokers and exchanges in this matter while reducing their data submission on a case-by-case basis.

The proposed rules would classify the required data into two types. The first one is Transaction Data, which include the volume and proportion of allocated digital tokens, the allocation price, the trading orders, the trading price and volume, and the transactions related to deposit, withdrawal and transfer of digital assets or money. The second classification is Profile Data, which include customer profile, company profile and product profile, including wallet address, customer account number, digital asset wallet address of digital asset business operators and ICO portals, and information on issuers and offerors of digital assets.

“A standardized database would not only benefit the supervision of digital asset businesses but would also promote cooperation between business operators and the SEC in optimizing the use of relevant data to create a clear picture of the overall digital asset industry, laying out digital asset market development plan, as well as solving problems and preventing risks,” the SEC said. “This regulatory proposal would also contribute to the stability, transparency, fairness and digital asset market integrity in the long run.”

Last month, the regulator updated the list of cryptocurrencies eligible for ICO investment or value comparison as base trading pair against other digital assets traded on digital asset exchanges. As a result, the current list comprises four cryptocurrencies, namely bitcoin (BTC), ethereum (ETH), Ripple (XRP) and Stellar (XLM). Three other cryptocurrencies have been removed from the list, including Bitcoin Cash (BCH), Ethereum Classic (ETC) and Litecoin (LTC).

“The list update has no impact on investors or digital asset businesses because so far no ICO has been launched and the operating digital asset exchanges have never used BCH, ETC or LTC as base trading pairs,” the SEC said.