New regulations re ICOs
New regulations reverse the ban but also stipulate strict conditions that all new token sales must adhere to.
According to the SEC decree, companies looking to conduct an ICO must signify the type of token being issued as well as other pertinent investment information.
This said, there are apparently five Taiwanese token sales that are locked and loaded, so to speak, and are scheduled to commence immediately after the ‘digital asset decree’ comes into effect.
This was reported by the Bangkok Post on June 13 (yesterday) and has since been picked up by several crypto news outlets across the web.
The new regulations will come into effect later this month, having been announced on June 8.
Thailand's crypto FOMO
Thawatchai Kiatkwankul, director of corporate finance in the equity department at the SEC, said that the Thai SEC recognises that ICO projects have tremendous growth potential and, as such, it would be economically foolish for the country to uphold the ban indefinitely.
Thawatchai said: "Projects which can be [easily vetted] and have commercial attributes attached to them will be considered for fund-raising."
However, the decree details a whole host of stipulations re ICOs so as to help protect consumers from being swindled by fraudulent projects and outright exit scams.
The decree said: “Each ICO offering can be offered to institutional and ultra-high-net-worth investors at an unlimited investment amount, but the investment is capped at 300,000 baht [roughly £7,000] for retail investment per person and per ICO project, or no more than 70 percent of total value of offered tokens.”
Seven cryptocurrencies approved for trading
Additionally, in a follow-on from the May, 2018 ruling that virtual currencies be classified as digital assets, Thailand has specified which cryptocurrencies have been approved to be used as trading pairs.
There are seven that have been approved so far; these are:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Ripple (XRP)
- Litecoin (LTC)
- Stellar (XLM)
The Thai SEC said these cryptocurrencies were cherry-picked because of their credibility and liquidity, among other factors.