In the early days of digital tokens, many adopters saw the technology as a sort of fun. They couldn’t have foreseen the interest blockchain would have before long, just as we are witnessing presently with ICO.
Thailand is among nations to have started brainstorming on modalities with which to streamline the crowdsale activities there. Thailand’s SEC announced that it has established a team to create guidelines that would govern cryptocurrency based crowdsale within their jurisdiction.
An inter-governmental body comprising Thailand’s SEC and the Stock Exchange of Thailand met to deliberate on modalities for a national digital currency policy. Information reaching Associated Press says there shall be inputs from stakeholders prior to the end of the committee’s work.
Even as discussions are ongoing regarding regulations, the first ICO by a Thai registered company has been announced. JVenture, a subsidiary of Jaymart plans a crowdsale of $20 million to create a blockchain based digital network for loans.
The current regulatory framework requires a limit of $10,000 for individual participants and no one is permitted to invest amounts in excess of $95,000. The new guidelines being articulated has the collaboration of stakeholders within Thailand’s ICO space.
It will also be an agenda at board level and a policy that is likely to be adopted by Q1 of 2018. The SEC Secretary-General Rapee Sucharitakul said that the country has an already mapped policy because ICO is a serious venture that needs a painstaking approach, reported Bankok press.
Mr. Sucharitakul noted that there has been rapid growth and adoption of ICO as a means of startup funding emphasizing that the country cannot afford to be left behind.
He said that the popular phenomenon, especially among tech and financial companies, is a quick way of raising funds for projects without much ado. Mr. Sucharitakul reiterated that it is of an essence to give ICO space an enabling environment devoid of disorder for it to thrive.
This novel move appears an apparent deviation from the previous stance of financial regulatory bodies in the country when they seemed skeptical about ICOs. The Deputy Secretary-General, Praoporn Senanarong said last year that ICOs posed significant disruptive risks to conventional finance system.
He expressed fears that digital tokens would come with attendant risk on traditional financial institutions. The statement was made when there already were plans to develop a national policy on ICO by Q2 of this year.
It was concluded to have a policy regarding crowdsale on the heels of concerns by regulators that token sale can incentivize perpetration of fraud. Policymakers however realized its potentials as a means of startup financing consequently needed to revolve between giving businesses access to ICO funding and simultaneously protect investors. Bitcoin futures are already traded on Stock Exchange of Thailand (SET).
The Thai SEC has already put modalities in motion concerning coordination of all crowdsale in Thailand. Companies are required to raise a maximum of 40 million baht ($1.3 million) through ICOs while 20 million baht ($650,000) could come from individuals.
Such companies are required to submit their whitepapers and details of the project, as well as the risks involved with indications showing team capability to manage the ICO funds.