Thus, Thailand Securities and Exchange Commission (SEC) announcement makes Thailand one of the first countries to allow ICOs in a regulated environment, according to CoinDesk.
The SEC said under the new regulatory framework any entity that wishes to conduct an ICO must file an application for approval with the regulator before starting a token sale. However, instead of directly screening applications from individual ICO projects, the SEC will first evaluate filings submitted by online marketplaces where potential ICO organizers can operate their token sales (ICO portals).
The SEC said those approved ICO portals will be responsible for screening ICO projects, after which the applications of those selected projects by ICO portals will then be accessed by the SEC for a final decision.
The SEC said that not only ICO portal applicants must have registered businesses in Thailand (with a minimum registered capital of USD 150,000), but also Individual ICO projects need to have a legal business registration in the country.
In addition, the SEC said only Thai baht, the local currency, and seven cryptocurrencies can be accepted in a token sale, including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, and Stellar.
As previously reported by CoinDesk, the new law is a result of a months-long process that saw public hearings and legislative debates regarding how to regulate cryptocurrency and ICOs in the country. A royal decree on the matter was initially announced in May 2018 before it was finalized to take effect in July 2018.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now