Thai announced regulations on crypto exchanges
Thailand Securities and Exchange Commission (SEC) has unveiled the details of legislative regulations that govern relations between parties of crypto assets trade and transactions. About 10 organizations are about to apply for licenses. Among them are cryptocurrency exchanges, brokers, and dealers.
not all assets tokens are welcome
This is a step forward for Thailand in regulating crypto exchanges scene. However, only seven cryptocurrencies will be recognized and allowed by SEC to be involved in trading operations. These are Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Ripple, and Stellar.
The final regulations are formed after several rounds of Public Hearings and declared on a Royal Decree on May 14. According to the Decree, the cryptocurrencies are declared as digital assets and digital tokens. Furthermore, the Decree specifies that all parties of digital business are to obtain approval of the Ministry of Finance. Parties are initial coin offering issuers, crypto exchanges, brokers and dealers involved in transactions of digital assets.
They are obliged to register at SEC in a period of 90 days of the effective date of the regulations. In order to get the approval from SEC, the token buyers are to name the type of tokens being issued, and to provide information about the investment, Bangkok Post reports.
Unauthorized firms will be filed a charge and will have to pay a fine (at least 500,000 Thai Baht, which is about $15,600), or may also get a prison sentence up to two years. Initial coin offerings will be monitored and taxed. Exchange participants will be requested a certain amount of minimum capital to proceed with operations.