After several meetings regarding the regulation of cryptocurrencies in the Thailand crypto market, a royal decree from Thailand’s government was enacted into law. This is to help the Thai government to monitor the operations of digital project organizers and the trade of these tokens in the country.
The decree termed cryptocurrencies as digital assets, which should not be treated as fiat currency, as such; it should not be traded in for fiat money, like Baht, dollar, or pounds.
This regulation came to raise the over one month ban on ICOs in Thailand. After a massive crypto craze in the country and several reported cases of people been victims of fictitious, made believe, crypto-projects used as a guise to swindle people, the Thai Government took a total “no-ICO” ban in May, which was followed by series of researches and deliberations by its Security and Exchange Commission. These regulations addressed several issues regarding the sales, trading, and operation of cryptocurrency based startups. The details of the various headings are as follows.
According to the Thai SEC, anyone who wishes to raise fund through an ICO must be registered and will be issued a license. In addition, there will be an official date for the sales of the token. The issuance of this license will be followed by a thorough check on the financial capacity of the organizers as well as the nature of their project.
In that regard, they must have a minimum base capital of $157K. In addition, they must be around to monitor the activities of these coins, after the offering, for a year, to make sure they stick to all of their promises.
Similar to the regulation for ICO organizers, the SEC also made room for the activities of cryptocurrency exchangers in the Thai crypto market. These regulations stipulate that all exchanges must be registered, either as a centralized or as decentralized exchanges.
For centralized ones, there will be a registration fee of $157,000 and a minimum capital base of $1, 5700,000
Also, for decentralized ones, the registration fee and requirements are just the same, as the centralized except for a minimum capital base of $314k.
Finally, in this category, are cryptocurrency brokers and dealers, having a minimum base Cap of $31,400 and $157,000 respectively.
And right on the high point of this news, is the Thai’s SEC definition of what a cryptocurrency is which they termed “a digital asset or token” which cannot take the place of Thailand’s Baht. As such, the regulations specified seven assets that will serve as a means of exchange for the Tokens. These cryptocurrencies are:
Violation for all of these decrees ranged from a two-year jail term sentence and a fine that is twice the value of the said token, which is for the project organizers who violate the stated terms of operation.
According to the SEC, this is one of such measures to help accommodate the healthy evolution of cryptocurrencies within the country. Rather than fight change, the Thailand government created an enabling environment for it.