After a recent meeting between Thai SEC officials, a new set of regulations has been established as part of Thailand’s continued efforts to safely adopt crypto assets and blockchain technology into their economy. The latest developments primarily concern new licensing and registration requirements for all cryptocurrency exchanges, brokerages and initial coin offerings (ICOs).
The new ICO framework includes a select list of 7 cryptocurrencies that the SEC deems has suitable credibility and liquidity. These cryptocurrencies are BTC, BCH, ETH, ETC, LTC, XRP and XLM.
New rules also require any token issuers to first seek approval from the SEC, and present the sufficient documentation needed to satisfy the governing body’s strict criteria.
The new licensing provisions are just as stringent, and require all market participants, including ICO issuers, crypto exchanges, brokers and dealers involved with crypto asset transactions to register with the SEC within 90 days of the effective date.
Each of these companies must also be registered in Thailand. Those that act outside of this new legislation and sell cryptocurrencies without this license, will be fined a minimum penalty of 500 000 Baht ($15 580) or up to 2X the unlawfully transacted amount and could face a 2 year prison sentence.
An extensive new fee structure includes registered capital minimum requirements and specific annual payments for both crypto brokerages and exchanges to legally operate in Thailand. Each crypto exchange must pay an upfront fee of 5 million Baht ($155 800) as well as an annual registration fee of 0,002% of the company’s trading volume. Crypto brokerages are expected to pay 2,5 million Baht ($77 925) upfront and an annual 0,001% of trading volume fee.