Thailand’s Security and Exchange Commission (SEC) official announcement of regulations for initial coin offerings (ICOs)

Despite the Thai Security and Exchange Commission (SEC) official announcement of regulations for initial coin offerings (ICOs) in July, companies are already issuing a token without initial approval. According to the announcement, Mr. Rapee Sucharitakul, platforms “wanting to launch an ICO must undergo screening from an ICO portal.” However, the SEC will first approve ICO portals before a platform can launch its ICO.
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Following the regulations, a company wanting to operate as an ICO portals must apply to the Thai SEC which can take up to 90 days, and the said company must be a “Thai registered company with capital of at least 5 million baht,” and issuers of such tokens can accept baht or cryptocurrencies”, according to the Thai SEC.

Moreover, the SEC divided the eligible companies that can invest in ICOs into four groups. The first group comprises of institutional investors; the second group consists of companies with registered capital, ranging from 70 million baht to 25 million; the third group consists of private companies and; the last group comprises of other retail investors with at least a capital of 300,000 baht.

Following the warning last week by the SEC to firms that may have issued ICO without a prior approval or license, according to a report, the SEC has investigated a firm bidding investors, through social media, for ICO tokens in the amount of at least 500 million baht. In response to this, the SEC has ordered the firm to restrict all activities relating to offering tokens because no company has been officially granted approval to issue new tokens. In addition, firms that may have to offer tokens without license may have launched their tokens prior to the Thailand’s cryptocurrency regulations, according to the SEC.

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