Thailand’s Security and Exchange Commission is set to authorize the first cryptocurrency Initial Coin Offering (ICO) portal. Following the launch of the ICO portal, the first approved Coin Offering will possibly be issued in December.
Thai SEC to Approve First ICO Portal in November
According to The Bangkok Post, the first ICO Portal will likely receive authorization this November. With the approval of the ICO portal, the process of certifying Initial Coin Offering Projects will begin.
Earlier in the year, the Thai SEC published the regulatory framework for the issuance of ICOs and the approval process for ICO portals in line with the country’s digital asset decree. The decree mandates that any ICO issuer must receive approval from the SEC. Approved ICOs can only offer digital tokens to investors through ICO portals. The ICO portals, in turn, must receive regulatory authorization to operate from the SEC before allowing any token offerings. Along with other requirements, a prospective ICO portal must be a company based in Thailand. The company must have at least 5 million baht (approx. $151,000) as registered capital.
The Secretary-General of the SEC, Rapee Sucharitakul said that ICOs should start receiving approval from the regulatory body in December. He also said that the ICO portals would help screen ICOs, conduct due diligence, prove the smart contract source code and verify the KYC process.
Even with the commencement of ICO portal operations, the Thai SEC continues to caution investors. According to the Secretary-General, the ICO portals might not always successfully screen out scam offerings. He advised investors to thoroughly research offerings before investing.
In a related development, SEC sent a list of five cryptocurrency exchange operators to the Finance Ministry for final regulatory approval. While the approval is pending, these exchanges are allowed to operate according to the digital asset decree.
Thailand’s Continues to Cautiously Embrace Cryptocurrency
The passing of the Digital Asset Businesses Decree marked a turning point for the country’s cryptocurrency markets. The Thai Government initially planned to ban ICOs and institute heavy taxes on crypto trading. Since the enactment of the cryptocurrency legislature, the country’s SEC has swung into action, developing a regulatory framework for the operations of prospective exchanges and cryptocurrency dealers.
In August, the SEC granted provisional approval to seven cryptocurrency exchanges including BX Thailand. The regulatory agency also granted temporary permission to two cryptocurrency dealers.
While the government is gradually supporting the local cryptocurrency market, it has shown zero tolerance for unregulated activities. In a recent report, the SEC named nine cryptocurrencies and ICOs and cautioned locals against investing in them as they were operating without prior approval.
Image courtesy Ethereum World News archives.