Cryptocurrency regulation will bring more legitimacy to this industry. The SEC in Thailand has been working on its official guidelines for some time now. A key aspect of its new rules is that ICO tokens cannot be traded for fiat.
Thailand’s SEC Finally Introduces Regulation
It has been coming for a while now, but the SEC is ready to regulate cryptocurrency in Thailand. The agency seeks to make all service providers comply with these rules by the end of June. It is an organic law which regulates both the trading and transacting of digital assets in the country. Additionally, companies providing such services will need to apply for a new license.
Some of these guidelines touch upon interesting concepts. There will be official trading for initial coin offering tokens. However, they can only be exchanged for seven specific cryptocurrencies. This includes Bitcoin, Bitcoin Cash, XRP, Litecoin, and a few others. This appears to be on par with how those tokens are traded under the current market conditions.
Any company engaging in this trading activity will need to apply for an operating license. The SEC expects at least five exchanges to apply in the coming weeks. All others will either be dealers or brokerage firms active in this space. The companies that are expected to apply was not clarified by any official source at this time.
No Fiat Currency Trading
What is perhaps the most remarkable aspect is how no ICO tokens can be traded against fiat currencies. That in itself sets a clear tone for the rest of the industry. Even so, that situation may change as more time progresses. This is still a first iteration of the guidelines, after all.
Anyone selling digital tokens without authorization will be fined. Such fines will be twice the value of the digital tokens. Interested parties within Thailand looking to engage in this business need to get in touch with the Finance Ministry for approval. Failure to comply can also result in jail time of up to two years.
This could be seen as a positive development for the cryptocurrency industry as a whole. More regulation will bring legitimacy to Bitcoin and other currencies. The focus on ICO tokens is rather significant. This new form of raising money has attracted a lot of attention, as well as scammers and thieves. With proper regulatory guidelines, the criminal aspect should become less appealing.
What do you think about the new guidelines issued by the Thai SEC? Let us know in the comments below.
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