Unnamed Operator Is a Foreign Entity
The Thai SEC’s approval means that other government agencies such as the Ministry of Commerce can now review the portal in preparation for granting the necessary licensing.
The portal will however not support the tokenization of securities since they are under a different law that requires companies seeking funds via that route to ask for licensing via the Securities and Exchange Act.
The portal will allow the screening of ICOs, confirm smart contract source codes, and perform due diligence besides conducting Know-Your-Customer (KYC) procedures. The unnamed operator of the ICO portal is likely to be a foreign entity.
Commenting on the development, SEC’s director of the Fintech Department Archari Suppiroj stated:
“Thailand’s first authorized ICO portal is being finalized for official approval with the relevant government agencies such as the Commerce Ministry. […] The first ICO deal will be available for a public offering in the near future under the digital asset royal decree.”
Suppiroj explained that the decision is informed by the realization that the ICO market is maturing from project-based and vague ideas to those that are backed by physical assets. He went on to explain that in the future, the SEC will issue standards to enable companies to tokenize securities and other assets.
Thailand’s Securities and Exchange Commission had initially intended to approve the first ICO portal in the country as early as November 2018, which should have gone live by December of the same year.
The delay is considered an essential step in ensuring digital assets achieve mainstream status. The SEC Secretary-General Tipsuda Thavaramara then said:
“The proposed guideline is an attempt to find greater equilibrium in the regulatory process and reduce regulatory impediments while taking risk management and investor protection into account.”
As BTCmanager reported earlier in March, the countries securities regulator banned the use of litecoin, bitcoin cash, and ethereum classic from being used in ICOs and approved the use of bitcoin, ether, XRP, and stellar instead.