The new ICO policy of Thailand, published by the SEC

05 Jul, 2018
by Paula D. Baciu
News
The new ICO policy of Thailand, published by the SEC

Following its adoption of an arguably unique and permissive attitude towards cryptocurrency, Thailand released the legal framework that will govern over ICOs (initial coin offerings) and ICO portals starting from the 16th July, Bangkok Post reported.

The SEC will supervise ICO portals, and ICO portals will have the power to authorize ICOs and oversee their activity. These portals must be companies established in Thailand with a minimum capital of 5mi. Thai Baht (THB) (or about $150,000), able to prove that they possess the necessary logistics, human resources, and technical infrastructure to assess ICO applicants. In addition to these, ICO portals will also verify investors’ identity, status, and risk-taking ability as part of the evaluation.

ICO issuers, on the other hand, will have a complementary set of legal requirements. These must follow the Thai legal jurisdiction and demonstrate the reliability and transparency of their business. In addition to the source code, these companies will also disclose their investment forecast and financial statements.

Investors can only purchase tokens with THB or one of the seven previously approved cryptocurrencies. However, retail (or personal) investments cannot exceed a total of 300,000 TBH (or $9,000) or 70% of the tokens offered, for each ICO.

These actions make Thailand probably the first country to develop a fully regulated - and probably the most secure as well - ICO investment environment. Although the outcomes of these moves are not known yet, naturally, these should be perceived as an encouragement for investors.

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