Asian nations such as Thailand are wasting no time in preparing their economies for a future that involves crypto assets. China is full steam ahead on blockchain technology, and Thailand is making plans to open up further to the digital asset industry with amendments to existing regulations.
Paving The Way For Thai Crypto Industry
According to reports in local media today, Thailand’s Securities and Exchange Commission plans to amend its digital asset business regulations next year. The overall aim is to facilitate the growth of crypto assets while protecting investors from unnecessary risk.
Secretary-general of the SEC, Ruenvadee Suwanmongkol, stated that they wish to study exiting regulations for any stumbling blocks that may hinder digital asset businesses within the kingdom.
“Laws should not be outdated and should serve market needs, especially for new digital asset products, and be competitive with the global market.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 royal decree on crypto businesses came into effect in May 2018 listing four types of secondary business intermediaries which were crypto exchanges, brokerage firms, dealers, and token portal service providers or ICO portals.
As it currently stands exchanges, brokers and dealers are required to apply for licenses from the Finance Ministry, while ICOs must be approved by the SEC.
Ms Ruenvadee added that there have been many applications for ICOs in Thailand but they must first satisfy regulatory approval. She continued to state that investor protection was also a priority.
“The legislation also aims to protect investors from risk of fraud and deception by dishonest persons, money laundering and exploitation of digital assets to facilitate illegal financial transactions, while ensuring regulatory clarity to facilitate legitimate uses of digital assets,”
Digital Asset Licenses Awarded
According to the SEC, five crypto companies have been granted crypto-asset exchange licenses. These include Bitkub Online Co Ltd and Satang Pro Corporation which are currently operating.
In a move that shocked local markets earlier this year, Bitcoin Co unexpectedly closed the county’s most popular exchange, BX Thailand. It was reported at the time that regulators in the military-appointed government were demanding unreasonable amounts of transaction data from the firm and its clients.
That leaves two remaining portals Bitherb Co Ltd and Huobi Thailand Co Ltd which have yet to commence operations. The regulator has also authorized official licenses to three crypto brokers, Coin TH Co Ltd, bitherb.net and Bitazza Co Ltd.
The move has been seen as a step forward for Thailand which has been increasingly looking towards China for policy direction.
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