Thailand’s Crypto Law Could Change in 2020
- Since its cryptocurrency regulations came into effect in 2018, only five companies received digital asset exchange licenses, of which only two are operational.
- After getting approved by the Thailand regulator last month, the first ICO portal in the country planned to launch a $98 million token offering.
Wat Phra Kaew, also known as the Temple of the Emerald Buddha, and officially known as Wat Phra Si Rattana Satsadaram, residing in Bangkok, Thailand. Freepik
Thailand’s Securities and Exchange Commission (SEC) is planning to amend the country’s cryptocurrency law in 2020, local news outlet the Bangkok Post reported on 25 November.
According to the report, the decision was made after the Thai SEC voiced some concerns that the current laws are making the country non-competitive.
According to the SEC’s data, since its current licensing regulations came into power in May 2018, only five companies have been able to complete the certification, of which only two have launched.
The Thai government is now planning to adjust the existing crypto laws as to accommodate the digital asset industry in the country, while still continuing to shield investors from possible risks.
Even though the regulator has not given details on how exactly current practices would change, the SEC’s Secretary General, Ruenvadee Suwanmongkol, said that they should be “flexible to apply the rules and regulations in line with the market environment”.
She further stated:
“For example, laws should not be outdated and should serve market needs, especially for new digital asset products, and be competitive with the global market. We need to explore any possible obstacles.”
The current law requires that exchanges, dealers and brokers apply for a license with the Finance Ministry, while ICO portals must first be approved by the SEC before they become operational.
The country also imposes strict penalties to those that sell digital tokens without the SEC’s approval. Sellers of unauthorised digital tokens can be fined for up to twice the value of the transaction, or at least 500,000 baht (around $16,500), and face a jail term of up to two years.
Last month, SE Digital, a subsidiary of financial services company Seamico Securities, became the first ICO portal to be approved by Thailand’s securities regulator.
At the time the company announced its plans to launch the first investment token in Thailand, with a targeted transaction size of 2-3 billion Baht (between $65.6 million and $98.7 million).
- One of the largest banks in Thailand, Kasikornbank (KBank), acquired local crypto exchange Satang for $103 million only a month after setting-up a $100 million fund for web3, fintech, and AI.
- Once the acquisition has been completed, KBank plans to rebrand Satan to Orbix, and separate the business into three divisions, a custody platform, crypto venture arm, and blockchain development.
Shutterstock
- Crypto.com has once again expanded its regulatory achievements with the acquisition of a major payment institution license for digital payment token services in Singapore.
- The license, for which the company received an in-principle approval last June, enables the exchange to provide a greater range of payment services in Singapore.
- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.