Despite the fact that cryptocurrencies aren’t officially recognized in Thailand, a local fintech company was able to raise funds from the public by offering digital tokens in 2018.
To tackle such discrepancies, the Thai government passed REDA, whose primary goal is to regulate ICOs in Thailand & oversee businesses trading in cryptocurrencies.
Governing cryptoassets (and more specifically, cryptocurrencies), REDA mainly focuses on:
- supply & management of cryptocurrencies;
- management of operators trading in cryptocurrencies.
Enforcing REDA is the exclusive prerogative of the SEC, Thailand’s main financial regulator.
The four most traded cryptocurrencies in the Kingdom of Thailand are:
- Bitcoin;
- Ethereum;
- Ripple;
- Stellar.
Thailand: Launching an ICO
Normally, permission to launch an ICO in the Kingdom of Thailand is granted to LLCs or LLCs registered as per the Thai laws. Please note that offering cryptocurrencies must be done via a SEC-approved online portal.
To be able to trade in cryptocurrencies, traders must get authorization & submit an application for ICO registration in Thailand with the SEC (prospectus included). Submitting an application & prospectus containing false information or not revealing essential information entails civil & criminal responsibility. As mentioned earlier, trading in digital currencies is only allowed via SEC-authorized ICO portals. Receiving SEC approval requires meeting the following criteria:
- being a Thai-registered company;
- having an authorized capital ;
- requiring issuers & their products to comply with DD procedures;
- checking issuers’ smart contracts & business plans for compliance with SEC requirements;
- carrying out CDD & KYC;
- running tests for suitability for investors.
As of now, Thailand has several SEC-authorized portals, such as SE Digital, T-BOX, & Longroot.
Regulation of Cryptocurrencies in Thailand
REDA also regulates intermediaries in the cryptoasset market. They’re divided into 3 types:
- Thai-registered cryptocurrency exchanges;
- digital currencies brokers;
- traders in digital currencies.
Those seeking to launch a cryptocurrency business in Asia should keep in mind that legal entities trading in cryptoassets in Thailand are required to apply for a license with the Finance Ministry. To obtain the license, they must have an SEC recommendation & adhere to its procedures & rules. Those include:
- having enough money to pay for business-related expenses;
- having risk management systems in place;
- carrying out CDD & KYC;
- complying with AML laws.
It’s expected that the Thai government will expand the scope of cryptocurrency regulation in Thailand. Currently, the country’s National Bank enables financial institutions offering cryptocurrency services or investing in cryptocurrencies to test their services via a regulatory sandbox program.
Seeking to launch an ICO in the Kingdom of Thailand? Need advice on the regulation of cryptocurrencies in the Kingdom of Thailand? Why not contact IQ Decision UK?
