Even though most of the people expected the big economies to come out with a regulatory framework for cryptocurrencies, ICOs, and other digital assets, it seems like smaller countries are moving much faster. It is the case for Thailand, which had implemented a cryptocurrency law around a month ago and now it had come out with another one specially designed for ICOs.
The ICO market continues to boom in 2018 and news like this are expected to continue to support the market, despite bubble fears.
In this material, we will discuss briefly some of the measures that had been taken and how the market could evolve in the near term.
The Thai ICO measures explained
The Thai Securities and Exchange Commission, the main financial regulator in the country had finally announced rules for Initial Coin Offerings. Starting with July 16th, all companies that what to run these funding operations will need to comply with them.
ICO initiators will need a company registered in Thailand and also they need a minimum capital of $150,000, according to the Bangkok Post. Each company will be allowed to issue any number of tokens to high net worth individuals, private equity companies, venture capital or institutional investors. With regards to the retail investors, they will need to adhere to a minimum of $9,000.
Another important thing to consider is the fact that ICO initiators will only be allowed to receive payments in seven cryptocurrencies: Bitcoin, Ethereum, Ripple, Bitcoin Cash, Ethereum Classic, Stellar, and Litecoin. Fiat payments in the local currency will also be allowed by the Thai SEC.
The financial agency will also want to know information about the investment prospectus, financial statements, and source code. An evaluation for each ICO will be made by the SEC in order to see if the companies match all disclosed information.
With these rules, ICOs can now operate in a fully regulated environment and will erase all fears related to any unexpected actions from the Thai government.
It is also worth to mention that the financial agency did not apply the same principles that the US SEC is reportedly wanting to implement. As we have discussed in a previous article, the US financial watchdog is willing to regulate some of the tokens as securities, a move that will definitely make it harder for any company to initiate an ICO. However, there is no actual implementation of that measure in the US, so things might change in the meantime.
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