What’s Going On?
Thailand’s capital markets authority has announced a proactive new framework for initial coin offerings (ICOs) which will go into effect on July 16.
Why Does It Matter?
Thailand’s Securities and Exchange Commission (SEC) announced companies looking to carry out an ICO will have to be approved by official ICO portals, reported the Bangkok Post. These ICO portals will have to be approved by the SEC and must be Thailand-based companies have a minimum registered capital of 5 million baht.
So Is That All?
No, there’s more – the SEC has said the management structure and personnel at these ICO portals must be “adequate for business operations”, reported the Bangkok Post. Portals are also required to evaluate ICO business plans and the distribution of digital tokens. They will also be expected to check that source and other computer code matches disclosed information.
Approved ICO operator will be allowed to offer an unlimited number of tokens to institutional investors, venture capital and private equity firms, reported CCN. However, there is a token value cap of 300,000 baht ($9,050) for retail investors.
Originally announced in March and reaffirmed via royal decree in May, the new framework will see Thailand become one of the first nations to permit ICOs in a fully-regulated environment, reported Cointelegraph.