Thailand-based cryptocurrency exchange Thai Digital Asset Exchange (TDAX) has postponed the registration and trading of new initial coin offerings (ICOs) by two weeks. The exchange took this step as it awaits a regulatory framework from the Securities and Exchange Commission (SEC).
The SEC is expected to release a regulatory framework for ICOs on March 8th, and a new fintech bill is likely to follow the regulatory rules.
TDAX’s founder and chief executive, Poramin Insom, revealed that there are six ICOs currently in the pipeline, but the exchange has decided for a two week postponement as the cryptocurrency market is expecting the SEC to unveil frameworks for ICOs.
Mr. Poramin said: “We are waiting for the ICO regulations from the SEC.”
In Thailand, TDAX is the second largest cryptocurrency exchange and it has listed many ICOs. Recently, TDAX completed a token sale of JFin coin by J Ventures, which is a subsidiary of SET-listed Jay Mart Plc. This ICO raised $100 million and each token was sold at 6.60 bhat.
“JFin coin will not be affected, as this ICO was fully subscribed to on Feb 16, while the first trading day will be held on April 2,” added Mr. Poramin.
According to the Bangkok Post, Thailand’s finance ministry has provided the SEC with full authority to handle all security-related regulations. With the new ICO regulations, the SEC is aiming to supervise the online exchanges and it is very likely that the exchanges will have to register themselves with the SEC to operate in Thailand.
Moreover, after the implementation of the regulatory rules, all the ICOs are to be done through a dedicated portal and they must originate in Thailand with a minimum registered capital of 5 million baht.
The ICO regulations are likely to cap individual investment at 300,000 bhat, reported the Bangkok Post. The SEC is considering this as the growing number of fundraising events using ICOs is disrupting the Stock Exchange of Thailand.
Meanwhile, Bangkok Bank recently terminated all transactions involving TDAX, claiming that the cryptocurrency business is not compliant with the commerce ministry.
“The bank called and asked whether there was an operating licence for proof, but I answered that this business was not under legal jurisdiction [hence the absence of an operating licence], so the bank said it would terminate the company’s bank account [with Bangkok Bank], as this business had no licence,” Mr. Poramin said.