Thailand is the latest country to join the ones that are imposing regulations on cryptocurrencies, local news reports. Countries as of late that are placing increasing importance in this realm are Russia, United States of America, Malaysia, South Korea and now Thailand cryptocurrency regulations will be put in place.
Thailand’s Securities and Exchange Commission (SEC) is being backed by financial authorities to spearhead the regulations over all segments of cryptocurrency trading and operations, including those that pertain to initial coin offerings (ICOs).
Korn Chatikavanij, chairman of the Thai Fintech Association (TFA), mentioned that the association supports the Thailand SEC in regulating all aspects of cryptocurrencies, since proper regulations need to be in place to minimize and eradicate risks involved with these investments, especially the ones relating to ICOs.
He also stated that this would be a learning curve since this is the first time that the government is imposing a regulatory body over such a market, and it is bound to improve with time.
Thailand and its plans to put regulations on icos
Korn also shared his approach towards ICOs and how they should not be getting difficult regulations levied upon them, stating that it would only cause the fund raising efforts to be met with difficulties as well. That being said, he agreed that ICOs pose more risks than traditional investments through stocks do, and thus need to be regulated more effectively.
The Thailand SEC plans to regulate ICOs by putting a new system in place, which would involve what it calls an “ICO Portal.”
Through this portal, the ICOs are to be originated from Thailand with a “minimum registered capital of up to 5 million baht.
Market participants have shown different opinions towards this approach, but overall, all of them have shown their trust in the Thai SEC.
How are the Thailand cryptocurrency regulations coming into effect?
In order to provide the Thai SEC with the power to regulate all segments of cryptocurrencies, a royal decree needs to be enacted.
Once the decree has been passed, the Thai SEC will then gather to finalize the last few details of cryptocurrency and ICO regulations.
While no definite timeline has been provided for when the decree could be enacted, it is likely that it will happen within this month, given the need to regulate cryptocurrencies and ICOs within the country.
The country has also seen increasing activity as prominent members like Vitalik Buterin and members from Omisego have visited with regulators in the region. The country may be implement a more reasonable approach to the sector as other nations in the region have done. Thailand cryptocurrency regulations will be important as the asian region is becoming a key player the in cryptocurrency industry.