Following the Royal Decree by Thailand’s regulatory authorities on May 14, 2018, that cryptocurrencies are formerly digital assets, the Asian nation is set to take its local blockchain-based digital currency industry to the next level by showing five Initial Coin Offering (ICO) projects the green light to operate in the area, out of the 50 startups that filed for approval.
A Crypto Giant in the Making?
According to the SEC director of equity finance Thawatchai Kiatkwankul, of the 50 firms that filed to launch their crypto-based fundraisers, only five meet the set standards of the SEC. As such they will fall under the regulatory watchdog’s approval.
Amidst that backdrop, the SEC is looking to hire more staff and expand its operations to enable it to handle both Initial Public Offerings (IPOs) and ICOs.
ICOs Must Have Real Use Cases
While many startups have succeeded in developing products and services to solve real-life problems via the ICO route, the sad truth remains that there are a vast array of projects that have no real use cases but are merely interested in deceiving people with technical grammatical jargons and cart away with their funds.
Back in February 2018, BTCManager reported that the U.S. SEC had forced dozens of similar ICO projects to abandon their schemes by just calling them over the telephone.
The Thai SEC is not oblivious of the fraudulent nature of some schemes in the digital currency space, as such they have made it clear that they will only approve projects that can “be [easily vetted] and have commercial attributes attached to them.”
The regulator has also hinted on easing the rules governing crypto investments and transactions provided investors become more educated concerning the risks involved in the burgeoning industry.
Bitcoin, Six Altcoins, 90-days Ultimatum, and Token Sale Information
The Thai authority’s guidelines also entail that only seven established cryptocurrencies including bitcoin, ether, XRP, litecoin, stellar, ethereum classic and bitcoin cash could be used as trading pairs.
With the latest development, the SEC has mandated all “stakehodlers” in its crypto space including exchanges, brokers, ICO organizers to endeavor to come under its umbrella within 90 days.
Additionally, all market participants are required to seek approval from the Thai Finance Ministry before carrying out activities in the virtual currency industry.
Interestingly the SEC has also made it clear that retail investors are not allowed to purchase ICO-generated tokens worth more than 300,000 baht ($9,000), while institutional investors and high net worth persons can pump in an unlimited amount of funds into any project.
At a time when crypto-related businesses and digital currency exchanges are migrating to Malta due to the nation’s amenable regulation for cryptos, this latest move by the Thai authorities could also lure more blockchain startups to the region.