Thailand’s regulatory watchdog and capital market authority, Securities and Exchange Commission (SEC) made an announcement on Wednesday, July 4, unveiling the regulatory framework for the functioning of Initial coin Offerings (ICOs) which is scheduled to go live starting from July 16, ahead this month.
Under the new guidelines, for any new business or startup willing to conduct ICOs, it first needs to get itself registered and approved by the Thailand SEC with a minimum required capital of 5 million bahts (approx. $150,000). The new regulation includes a two-tier vetting procedure with accredited “ICO portals” which will be looking into selecting the applicants to proceed further for the final ICO screening.
SEC secretary-general Rapee Sucharitakul stated:
“The SEC is pleased to immediately discuss details with those who would like to be approved as ICO portals in order for them to be prepared for the regulatory framework. After the SEC approves an ICO portal, the token will be assessed for approval.”
In addition, the new regulations specify that ICO portals must have an adequate management structure, enough personnel to properly prepare and evaluate the business plan and distribution structure of issuers’ tokens, and ensure all source code has been properly disclosed.
The SEC will furthermore require that disclosure of the investment prospectus, financial statements, and the ICOs source code will have to be mandated by the commission. Plans of operation will also be scrutinized by the SEC who will also evaluate ICO issuers’ business plans and the distribution structure of digital tokens as well as perform checks to ensure that computer code, or source code, matches the disclosed information,’ the report added.
The Thai authorities started the legislative procedure to regulate the crypto market back in March. These new guidelines are a push towards Thai government’s approval of conducting ICO in a fully-regulated environment.