The Thailand financial regulator will use a new regulatory framework to validate five ICO projects. The country has over 50 ICO projects, but only five of them met the requirements. The new framework will come into force this month.
The Approval Of The Five ICO Projects
Bangkok Post has reported that Thailand Securities and Exchange Commission (SEC) will endorse five initial coin offering (ICO) projects. The country recently passed a law to control Cryptocurrencies and ICOs. The regulations were passed at the beginning of this week and will take effect in a month’s time.
The SEC did not give details of the ICO projects that were approved. According to the Commission’s director Mr. Thawatchai Kiatkwankul, the authority selected the five projects from about 50 that wanted to raise capital from the Thai capital market. The five projects are the only ones that met these new requirements.
New ICO Projects Expected Before Year End
All new ICOs have been put on hold until the new law takes effect. The new law, however, will not affect companies that previously raised their capital in the market according to Krungthep Turakij. Two ICO projects have already been launched in the country. They include Jfin Coin by J Ventures Limited and Zmine Holdings’ ZMN tokens.
For an ICO issuer to be listed, it must be approved by ICO portal according to Mrs. Tipsuda Thavaramara, Thai SEC’s Deputy Secretary-General responsible or Policy and Corporate Finance Groups. ICO portals will be crucial, as they will provide financial advice to the issuers. The portals will also ensure the adherence to all know-your-customer (KYC) rules. ICO projects that meet the ICO portal requirement will have to wait for two months for the SEC to review and give the final approval verdict.
Any company wishing to issue tokens will have to meet the new criteria set by SEC. New businesses should have a minimum capital of 5 million baht (~US$156,625). The new rules restrict investment by retail investors to a maximum of 300,000 baht (~$9,343) per ICO project, similar to less than 70 percent of the tokens.
These new regulations on investment limit will not be applicable for institutional and ultra-high-net-worth investors.
Thailand’s Plan For ICO Projects
Bangkok Post quoted Mr. Thawatchai Kiatkwankul saying that the commission is planning to expand its registration of ICOs. The authority will also combine ICOs registration with initial public offerings (IPOs). ICO projects have experienced tremendous growth in recent times and still have growth potential. By working with ICO portals, the SEC hopes to shield the public from potential scams.
The new move by SEC is expected to legitimize ICO projects and encourage investments in the sector. Moreover, it will be easy for legit companies to raise enough capital, as the screening will help in identifying and eliminating unscrupulous dealers. The new regulations come at a time when cases of theft and scams have been on the rise. The use of Cryptocurrencies is also expected to increase, as the authority will give confidence to those wishing to invest in the sector. The various financial regulators that have not yet passed laws for the regulation of Cryptocurrencies will find a lot to learn from Thai’s body.