Thailand publishes new ICO framework conditions

The Thai Securities and Exchange Commission officially announced the imminent introduction of a new legal framework for crypto currencies and ICOs, which is expected to come into force on July 16, 2018. The Southeast Asian pro-crypto-nation recently announced the legalization of the domestic crypto currency markets.

In an announcement published on Wednesday, the Thai SEC presented information on the new ICO guidelines that will make the Kingdom one of the first countries in the world to allow the introduction of domestic ICOs in a fully regulated environment.

Thai Ethereum code supports domestic ICOs

The statement of the Thai SEC unequivocally outlines the Thai government’s position on ICOs and states that the Ethereum code is not a scam and “supports the issuance and offering of digital tokens via ICO”. The introduction and operation of ICOs in Thailand will be regulated by BE 2561’s Digital Asset Management Act from 16 July 2018 and will require future Ethereum code to undergo a screening process.

ICOs operating in Thailand must be filed by a Thai company with a share capital of not less than Baht 5 million (USD 150,000) and will be reviewed by a SEC ICO portal to evaluate the business plan and distribution structure of the tokens. Interestingly, the SEC’s ICO portal will also review project code repositories.

ICO legal framework in Thailand

The Thai ICO legal framework also takes into account institutional participation and risk capital, with the total amount sold to retail investors being limited to four times the equity or no more than 70 per cent.

While ICOs in Thailand are legal under the Digital Asset Management Act, organisations operating ICOs are restricted in the remittance methods used to sell tokens during mass sales. ICO issuers can only obtain Thai Baht, Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, XRP or Stellar Lumens.

The Secretary General of the Securities and Exchange Commission, Rapee Sucharitakul, commented on the new regulatory framework and stressed the importance of investor due diligence in investments in ICOs:

“The SEC’s criteria will help set the standard for ICOs and improve the screening process to protect investors from fraud. However, SEC licensing for digital token offerings does not guarantee the success of a fundraising project…. Investors should study the information thoroughly and be sure that they can accept the associated risk before investing”.

The Thai government takes a progressive approach to crypto regulation and makes the country a fertile ground for promising blockchain ventures – especially Bangkok-based OmiseGO, which is currently the most successful blockchain venture by market capitalization.

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