The financial markets regulator of Thailand has said today that its new ICO regulation will come into effect from 16th of July. The regulations, that were announced way back in June, will now come into effect after 10 days making Thailand one of the earliest countries to allow ICOs in regulated environment.
The announcement in this regard from Thailand Securities and Exchange Commission (SEC) came yesterday. In the announcement SEC said that any entity willing to conduct an ICO in the country must file an application with SEC before it can conduct such an offering. Without SEC’s nod ICOs can’t be conducted in the country.
However, the process that Thailand SEC has chosen to review the applications is quite unique in itself. Instead of going through every individual ICO application itself the SEC will firstly evaluate the applications of so-called “ICO portals”. These portals are marketplaces where token sales are organized by potential ICO issuers. First of all these portals will be approved by the SEC. Then once they’ve been approved it will be the responsibility of these ICO portals to screen the applications of ICO issuers before sending them to SEC for final approval.
Becoming an SEC approved ICO portal is also not exactly a cakewalk. The companies willing to obtain this status must be registered inside Thailand with a minimum registered capital of 5 million baht ($150,000). These portals should also have adequate resources to evaluate the business plans, project structures and source codes of potential ICO issuers.
Finally, SEC said that besides Thailand’s national currency Thai baht only 7 other cryptocurrencies can be accepted in token sales. These include Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, XRP and Lumens, all of which were legalized last month.