Thai SEC Plans to Relax ICO Regulations
The Thai Securities and Exchange Commission (SEC) is reportedly planning to ease the country’s regulation for initial coin offerings. The regulator is conducting a public hearing to relax rules on pre-sales and private token sales. The commission has also unveiled plans to prevent the exploitation of token sales.
The Thai SEC made an announcement regarding the country’s regulation for initial coin offerings on Thursday. According to the Bangkok Post:
The current regulations apply to all token sales including pre-ICO and private sales, the news outlet explained. Noting that the change will reduce burdens for token service providers, the publication continued: “The existing regulations are barriers for ICO fundraising in practice, so the SEC plans to relax certain rules for digital token sales made through private placement to specific investor groups. The intention is to allow private digital token sales to proceed without the need to submit registration statements and a draft prospectus.”
Thailand enacted the royal decree on digital assets on May 14, putting the Thai SEC in charge of regulating all activities relating to cryptocurrencies and ICOs. Crypto exchanges, brokers and dealers must be licensed by the commission. Currently, six exchanges and one dealer have received temporary licenses but no ICO portal has been certified. SEC secretary-general Rapee Sucharitakul previously said that an ICO portal was likely to be certified in November. However, after evaluation, the regulator reportedly said that the portal will not be approved this year due to some security issues.
ICO Regulatory Framework in the Works
In a statement posted on the Thai SEC’s website on Thursday, SEC assistant secretary-general Praoporn Senanarong explained that “The Thai government is in the process of considering the appropriate regulatory framework” for token sales. She emphasized that ICO funding “must be done through an ICO portal approved by the SEC to help screen ICOs and increase transparency.” Comments on the regulatory framework for ICOs can be submitted to the SEC until Jan. 22 next year.
Senanarong further noted that there is no investment limit for institutional investors, venture capitals, or high net worth investors. However, there is a limit for retail investors. The Bangkok Post added that, over a 12-month period, each token sale will be limited to 50 investors, while the investment limit for individual investors will be 20 million baht (~$611,957). The news outlet further elaborated:
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Article source: “https://news.bitcoin.com/thai-sec-ico-regulations/”