There is a silver lining amidst the current crypto market decline that has been caused by a hack on the popular South Korean exchange known as CoinRail. Initial reports indicate that the crypto-markets have responded with a decline in volume of $14 Billion within a few hours.
However, as earlier mentioned, there is a silver lining in the form of news from Thailand that indicate that the SEC (Securities and Exchange Commission) has given clear guidelines with respect to the country’s regulatory framework for cryptocurrencies and ICOs (Initial Coin Offerings).
The SEC of Thailand, announced the above on Friday after approving the measures in a June 7th meeting. Part of the new measures include allowing seven cryptocurrencies to be used for ICOs as well as for trading pairs in the country.
These 7 cryptocurrencies are the fan favorites of:
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Ripple (XRP)
- Stellar (XLM)
The reasons for choosing these seven cryptocurrencies by the SEC were two: consensus credibility and the liquidity of the digital assets.
The Thai SEC also expects about 10 firms to apply for crypto licenses including crypto exchanges and crypto brokers and dealers. The crypto exchanges have up until the 14th of August to apply for the licenses. This date is in line with a 90 day notice given with the announcement of the approved cryptocurrencies and regulations by the Thailand SEC. The applications will be limited to companies registered in the country with an upfront fee of 5 Million Baht (Approximately $157k).
There will also be an annual fee for such crypto entities that will be calculated as 0.002% of the total trading volume for crypto exchanges and 0.001% of the total trading volume for brokerage firms. Each with a minimum fee of 500,000 Baht and 250,000 Baht respectively; and a maximum fee of 20 Million and 5 Million Baht will also be used to cap payments by both categories respectively.
With respect to ICOs, the SEC stated that each ICO should clearly state the type of tokens being issued as well as complete investment information. There will also be no limit given to the amount of ICOs that can be offered to institutional and ultra-high-net-worth investors. However, there will be an investment cap of 300,000 Baht per individual per ICO and no more than 70% of the total value of offered tokens.
In conclusion, such clear crypto regulatory guidelines by the Thai SEC sets further precedence for any other country exploring the regulation of cryptocurrencies and ICOs.
[Photo source, fintechnews.sg]