Thailand has taken a fairly forward-looking approach to regulating the cryptocurrency sector. In the process of exploring the legislative balance, Thailand passed a new law that ended the long-standing debate.
Currency or securities? Why not both?
Skip the debate that regulators around the world seem unable to resolve. Thailand has adopted a new law that stipulates that digital assets can be either money or securities, depending on the intended purpose of the token.
This law is known as the Digital Assets Business Act, which regulates two types of digital assets. "Cryptographic currency" refers to the medium used to exchange goods, and "digital tokens" are defined as the right to participate in an investment or to obtain a specific commodity.
The country has also introduced corresponding governance rules to manage digital asset activities that allow entities to participate, including
(1) Digital Asset Exchange;
(2) Digital asset brokers;
(3) Digital asset trading;
(4) Activities related to other digital assets as stipulated by the Ministry of Finance.
The Ministry of Finance of Thailand is also responsible for the registration and licensing of cryptocurrency exchanges.
According to Archari Suppiroj, chairman of the Securities and Exchange Commission of Thailand, the move stems from the Commission's intention to achieve a regulatory balance between those who oppose cryptocurrencies and those who use cryptocurrencies for gamblers. She also pointed out that regulations must be implemented and set up cautiously, and too strict methods may lead investors to leave.
ICO is also under supervision
The country is also gradually implementing measures to solve the problems caused by ICO. The country has asked the ICO to obtain permission from the Ministry of Finance and adopt a formalization process similar to issuing stocks or bonds.
The law also stipulates that the ICO crowdfunding website needs to do some necessary measures to ensure that the token is supervised for at least one year after the issue, while maintaining a reserve fund of 5 million baht (about $157,000).