Thailand is on its way to regulate cryptocurrencies as the prospect has received the nod from financial experts, reported the Bangkok Post.
Based on the proposals, the Securities and Exchange Commission (SEC) will be the responsible authority regulating all types of digital assets, given its long-time involvement in monitoring the development of digital coins in the Thai markets.
The Thai Fintech Association (TFA) supported the proposal for the SEC to take the charge, and the TFA’s chairman Korn Chatikavanij revealed that the agency has consulted with the SEC, the Bank of Thailand and the finance ministry about imposing regulatory rules properly.
Mr. Korn, also a former finance minister, told the Bangkok Post: “I agree with the Finance Ministry’s [view] of letting the SEC be the only organization governing digital assets because it already oversees securities and has a profound understanding of digital assets.”
“Digital assets are new for everyone, and no one knows everything [about them], so all parties should be open-minded, learn about them and have proper rules and regulations,” he added.
Mr. Korn further supports a liberal approach while imposing regulatory rules, as otherwise he believes that it will put the small business in a tough spot to raise funds.
However, to enact the new law for empowering the SEC with regulatory power, a royal decree is necessary, as decided by all the involved parties – Deputy Prime Minister Wissanu Krea-ngam, Finance Minister Apisak Tantivorawong, and related agencies – revealed the SEC’s secretary-general Rapee Sucharitakul.
Thailand is already an ICO-friendly country, and according to Thailand’s central bank chief, the new law regarding the regulatory powers will be confirmed within a month.
The SEC is already in the process of drafting a regulatory framework for ICOs. Up until now, most market participants have agreed with the SEC that ICOs should be regulated through an ‘investment participation’ track. This means that ICOs are required to be conducted through a dedicated ICO portal originating in Thailand, with a minimum registered capital of 5 million baht.