Thailand Unveils Details of Legalizing Cryptocurrencies

Thailand Unveils Details of Legalizing Cryptocurrencies

The landmark decision of the Revenue Department of Thailand, to waive existing taxes imposed on individual cryptocurrency investors and regulate all digital currencies as well as ICOs in the country, went into effect on 14 May 2018.

As a result, the Thai Securities and Exchange Commission (SEC), which is in charge of these regulations, unveiled specifics of this regulatory structure on 7 June 2018. Details of these regulations are below.

Seven Approved Cryptocurrencies

The SEC approved seven cryptocurrencies that are to be used as trading pairs for the acquiring of initial coin offerings or ICOs. These seven digital currencies include Bitcoin, Bitcoin Cash, Stellar, Ripple, Litecoin, Ethereum and Ethereum Classic. It is reported that the credibility of the currency and its liquidity, were the criteria considered by the SEC, to decide upon these seven cryptocurrencies.

Licensing Requirements

Following the new cryptocurrency regulations, close to ten firms are expected to apply for licenses to operate as exchanges, with the SEC. Companies failing to apply for their licenses before the 14th of August, lose their chance of ever operating as cryptocurrency exchanges. Apart from an application fee of 5 million baht, only firms that are registered will be considered for licenses.  While the fee is 2 million baht for cryptocurrency dealers, it is 2.5 million baht for brokerage firms willing to dabble in digital currencies and ICOs.

Restrictions on ICOs

The Thai SEC’s restrictions on token issuers include the compulsory stating of the type of tokens they are issuing as well as complete disclosure of investment information. Prospective ICO portals are required to have a registered capital of at least 5 million baht as well as oversee the ICO offering for a minimum of one year.

Although these new regulations put forward by the Thai SEC do not speak about any limit of investments on individuals with high net-worths, it does mention that investment will be capped at 300,000 baht per person and per ICO, for retail investors and not in excess of 70% of the total value of tokens being offered.

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Anand Sai has worked in the field of market research as an analyst and a consultant and has also operated at several leadership positions. He has an enormous experience with respect to the compilation of high-quality market research reports and boasts over six years of experience in end-to-end project management. Anand is a dependable voice in the market research field and has been named in some of the top industry publications. He is also a travel junkie and loves to explore new places with his friends.