In its balanced approach to the cryptocurrency Thailand takes further steps to regulate IPOs tokens (ICO) by extending existing rules. Discussion regarding changes between the relevant institutions has already begun, and will soon be the subject of public hearings. The first ICO that will be carried out by local company, is scheduled for March – it is planned to attract $ 20 million for the development of decentralized lending platforms.
The Commission on securities and exchange Commission of Thailand (SEC) and stock exchange of Thailand (SET) to discuss a comprehensive regulatory framework that will regulate the collection of funds through primary placement of tokens, reports the Bangkok Post. It is expected that a public hearing will be held in the near future. After its completion, a new set of rules will be presented to the Board of Directors of the Commission for further consideration.
Existing rules limit the maximum investment in ICO for retail investors $ 10 000 and 95 000 dollars per person. Using additional information collected from market participants, the Board of Directors SEC will finalize the regulatory framework for the placing of tokens and related financial transactions. It is expected that this issue will be raised for discussion by the Council in the first quarter of this year.
«The issue of the ICO requires a coherent national policy, as this is a serious problem,» said the Secretary-General SEC, RAPI Sucharitakul (Rapee Sucharitakul), noting that the rapid growth of fundraising through ICO in many countries is the main reason why Thailand wants to resolve this issue.
If ICO would not be regulated, investors and other market participants can question their legitimacy according to RAPI, warning further comment about the necessity of normative regulation of this type of investment. Thai official said the growing popularity of IPOs tokens, investors and startups from the technology sector. According to him, the ICO is now in the trend because they help to quickly raise funds without providing financial statements.
The nearest official ICO planned a local company in March of this year. Subsidiary company Jaymart J Ventures intends to become the first registered company that will issue the token «JFin». The funds raised will be used to develop a decentralized digital loan platform, integrated with the technology of the blockchain. J Ventures is hoping to raise over 21 million dollars in local currency in the first phase of placement. One token will cost 6.40 baht (20 cents), and using the ICO will be offered a total of 100 million coins.
The first doubt go by the wayside
The statement of the Thai SEC is a small change in the overall positive attitude of the regulator to ICO. Earlier comments from representatives of the Commission showed some concern with this funding method, but it seems that officials were able to overcome your fear. The assistant Secretary-General of Proporn Senanarong (Praoporn Senanarong) had previously stated that the new method of collecting funds is a «long-term risk to traditional Finance.»
At the time of this statement addressing the regulation the ICO was promised for the second quarter of next year. Proporn noted that the sale of tokens may replace an initial public offering of shares in the long term. According to him, this will disrupt the traditional operations of companies in asset management, investment banking, investment consultants, stock exchanges and brokers.
In an effort to adopt a «balanced policy towards ICO», last year, the SEC expressed a desire to «find a balance between supporting digital innovation and protecting investors from fraud in the industry ICO». The regulator warned that the ICO can be used as a tool for fraud, but also noted the potential of placing tokens to meet the funding needs of startups. Earlier this month, regulators Thailand allowed
futures trading for bitcoin.
In accordance with the new regulation the ICO, companies will be permitted to receive from retail investors up to 20 million baht (≈ 640 000 USD) in a single project. The total amount of fundraising is limited to 40 million baht (≈$1.3 million).
The Commission on securities and exchange Commission also intends to implement procedures for the selection of projects of ICO through a special portal. Companies will have to publish a document detailing the project objectives, business plans and intended use of funds received, project-related legal risks, management and Advisory information as well as data on tokens.