The Securities and Exchange Commission (SEC) of Thailand has released a regulatory framework on the issuance and sale of digital tokens via Initial Coin Offerings (ICOs) in the country, Bangkok Post reported.
In addition, the regulator has also announced the ICO portal process, which will be effective from July 16.
As the Digital Asset Management Act requires ICO issuers to be screened by ICO portals, ICO portals will need to be approved by the SEC.
Importantly, the applicant for ICO portal must be based in Thailand with minimum registered capital of 5 million baht. Its management structure and personnel must be appropriate for business operations.
The ICO portals are required to be ready to evaluate ICO issuers – their business plans, distribution structure of digital tokens, along with checks to verify whether the computer code or source code matches the disclosed information. In addition, they would also be responsible for identifying investors' status, identity, and their ability to take risks.
Once ICO portals have been approved, the regulator will start screening the applications for the issuance and sale of digital tokens for ICOs.
ICO issuers must be companies incorporated under the Thai law, with clear business plans and licensing requirements. There should be proper disclosure of source code, investment prospectus, and financial statements.
Each ICO could be offered to ultra-high net worth investors, venture capital firms, and private equity funds at an unlimited amount. However, for retail investors, the investment is capped at 300,000 baht per person and per ICO project, or not more than 70 percent of the total offering.
"The SEC is pleased to immediately discuss details with those who would like to be approved as ICO portals in order for them to be prepared for the regulatory framework. After the SEC approves an ICO portal, the token will be assessed for approval," said SEC secretary-general Rapee Sucharitakul.
