Thailand’s Security and Exchange Commission (SEC) has announced new regulations on the ICO’s hold in the country. The new law will come into effect on July 16, the local media Bangkok Post reports.
Why it is important
- The new law will legalize digital economy in the country, help lower the risks and introduce transparent rules for resolving conflicts that periodically arise between investors and ICO hosting companies.
- Сompanies will have to disclose investment plans, financial documents and source code of their projects. All information on the ICO will have to be placed on SEC-approved portals only. ICO holders will be allowed to offer an unlimited number of tokens to institutional investors, venture capitalists and people with super-high incomes. For private individuals, the maximum investment amount will be limited to 300,000 baht ($9,050).
The new law aims to attract financing only in seven cryptocurrencies, such as Bitcoin (Bitcoin), Ethereum (ETH/USD), XRP (XRP/USD), Bitcoin Cash (EXANTE: Bitcoin.Cash), Ethereum Classic (ETC/USD), Stellar (XLM) and Litecoin (LTC/USD). It is also allowed to collect local fiat currency.
SEC is ready to discuss approval processes with the potential ICO portals. First, the ICO portal should be accepted by the SEC, which leads to a further evaluation of the token.
Earlier in April it became known that Thailand approved the draft law on the regulation of сryptoсurrency along with the ICO and started testing the digital currency for interbank settlements as part of a broader initiative to use blockchain in various sectors of the economy.
By Nadya Astam