ICO NEWS: Thai cryptocurrency exchange halts ICO registrations

This follows Bangkok Bank’s decision to terminate TDAX’s account over the weekend to pause crypto transactions from going through. A missing operating license was the reason given by Bangkok Bank.

However, TDAX founder and chief executive Poramin Insom said that the exchange was registered with the Commerce Ministry’s Business Development department as a digital currency business.

He said: "The bank called and asked whether there was an operating licence for proof, but I answered that this business was not under legal jurisdiction [hence the absence of an operating licence], so the bank said it would terminate the company's bank account [with Bangkok Bank], as this business had no licence."

This is reportedly the first time a domestic financial institution has had its crypto transactions put on hold.

In a circular sent out last week, the Central Bank of Thailand stated that no domestic banks are permitted to invest and trade in cryptocurrencies, nor participate in or create exchanges for crypto trading. Exchanges aren’t subject to this.

A source told the Bangkok Post that the Thailand SEC is likely to release the new regulatory ICO framework on March 8. The new regulations may require all ICOs to be registered on an ‘ICO port’. In order to be accepted, one source says companies will need to have 5 million Baht (approx. $160,000) of capital.

A different source reckons that the cap for individual investments will be 300,000 Baht (approx. $9,500) which is pretty low and will likely force ICO organisers to seek investment abroad. Of course, they’d be doing this anyway so no change there.