Thailand’s Securities and Exchange Commission (SEC) is tasked to regulate cryptocurrencies including its trading, exchanges, and fund-raising. This will take effect once there is an official royal decree.
The Thai Fintech Association (TFA) is in full support of this decision. TFA chairman and former finance minister Korn Chatikavanij stated that the Thai SEC is more qualified for the role than any other public organization because it has already been monitoring crypto developments in the country. It is SEC understands how the industry works better than anyone else.
“I agree with the Finance Ministry’s [view] of letting the SEC be the only organization governing digital assets because it already oversees securities and has profound understanding of digital assets,” said Korn.
Korn believes that the parties involved should be open-minded in learning about digital currencies and in making the proper rules and regulations surrounding them.
The TFA promotes education instead of restriction. Initial coin offerings (ICOs) are beneficial for start-ups and should not have extremely strict rules imposed on them. They experienced the same issue with initial public offerings (IPOs) though ICOs are generally more risky than IPOs. Hence, the need for education.
The SEC drafted the ICO regulatory framework and the public hearings were completed on January 22. Most of them agreed with the SEC’s proposal of an “investment participation” track wherein ICOs are required to be created via an ICO portal. The portal must originate in Thailand with a minimum of 5 million baht in registered capital.
Thailand Deputy Prime Minister Wissanu Krea-ngam, current Finance Minister Apisak Tantivarawong and other related agencies came into agreement in a meeting that a royal decree is to be enacted to give SEC the cryptocurrency regulatory powers it needs.
SEC secretary Rapee Sucharitakul says that it will cover crypto investor protections as well as how some cryptocurrencies are used for criminal activities like money-laundering and Ponzi schemes. This law is to be finalized in a month’s time.
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