The Thailand Securities and Exchange Commission (SEC), which is the regulatory body of the country, has announced the approval of a total of seven digital currency firms to carry out business activities within the cryptocurrency market which as part of the formalization of the nation’s domestic market. This announcement was published on the SEC’s official website on the 16th of August 2018, and it further stated that some new firms are currently under review.
While commenting on the essence of the approval, Mr. Rapee Sucharitakul, who is the Secretary General of the Thai Securities and Exchange Commission (SEC), said that:
“Investing in high-risk digital assets [involves] those who are interested in investing must be knowledgeable and can take the risk of losing money. And in the case of people to persuade to invest. Investors should check whether the business is listed as listed by the SEC. By operators who are not on the list and wish to operate a digital asset business. It can apply for a license to the SEC and will be able to carry on business only if it is licensed by the Minister of Finance.”
Thailand went to the extent of leaving an open door to anyone who is scared about investing, stating that “If people have doubts about investing in digital assets, please contact the SEC…”
In that light, the Thai SEC confirmed the authorization of the following crypto exchange and ICO firms: Bitcoin Co. Ltd. (BX), Bitkub Online Co. Ltd., Cash2coins Co. Ltd., Group Co. Ltd. (TDAX), and Coin Asset Co. Ltd. Which implies that they have been approved with unreserved right to operate as legal cryptocurrency exchanges with its market jurisdiction two cryptocurrency dealers were authorized as well Coins TH Co. Ltd. and Digital Coin Co. Ltd. (ThaiWM).
The Thai SEC explained that the approval is a fragment of the project of “transitional” rules governing crypto-related business activities in Thailand. Apparently, the first phase of regulations came into force May 14, this year.
The regulatory body while discharging its function gave a directive to the firms to commence operation even though they will be mandated to wait for a full license by simply notifying the Thailand Securities and Exchange Commission within a space of 90 days. Giving an explanation on the two firms yet to approved, the SEC stated that:
“In addition, the SEC is currently reviewing the data of two other digital asset operators that have filed an application under the Transitional Provisions.”
The Thai SEC had also revealed sometimes last week that it will be placing massive interest from prospective Initial Coin Offering (ICO) issuers in applying for legal authority to operate in the country.
Despite the staggering number of about 50 prospective cryptocurrency projects had come to lobby for the approval and the fact that regulator having previously outlined prerequisites needed to be fulfilled in order to be considered for approval. Nevertheless, only five applicants had met those prerequisites which has further translated into initial approval.
On the 14th of May, 2018, the Management Act, BE 2561 was enacted and by default becomes a part of the country’s legal framework (though until the slated day for it to take effect), which enables digital asset holders to actively participate before the underlined date the law is slated to take full effect.
Such a company would continue business transactions until the day the law takes effect which happens to be August 14, 2018, this moment; they will be regarded as business operators.