By George Ward
Thailand’s Securities and Exchange Commission is gearing up to ease the restrictions on retail investments associated with initial coin offerings (ICOs) to promote digital asset investments. According to an official announcement, the Thai securities regulator intends to remove the 300,000 baht ($8,800) limit per person for asset-backed ICOs.
Also, it is contemplating the possibility of enabling more significant investments in ICOs backed by real estate and infrastructure.
Thai SEC Opens Public Consultation
The Thai regulator stated that implementing these new measures aims to aid the advancement of innovative technology within its shores, given the progress of the capital market and the digital economy. Also, the regulator emphasized that the amendment of regulations is intended to improve the supervision of crypto operations and minimize the potential risks that could impact investors, crypto operators, and the market.
Meanwhile, the Commission has initiated a public hearing to discuss abolishing the investment limit. It acknowledged that the proposed measures could amplify investors’ risk exposure and has requested feedback from the public.
Notably, the consultation process will end on April 27th. Per the SEC, all crypto operators must seek its permission before expanding their services.
Furthermore, the securities regulator warned that these operators might have to bear extra expenses to comply with the upcoming ICO regulations. Interestingly, the Commission recently proposed several regulatory amendments to regulate its local crypto market.
Earlier this month, the SEC commenced a public consultation regarding its draft regulation prohibiting cryptocurrency companies from offering staking and lending services.
Crypto Regulation In Thailand
Per the regulator’s policy, Virtual Asset Service Providers (VASPs) cannot utilize customers’ deposits or offer lending services. The Commission introduced this measure to safeguard investors against potential losses in the event of service termination.
Besides, several crypto lending platforms (notably Celsius, BlockFi, and Voyager Digitals) ceased operations last year. Furthermore, the watchdog has emphasized that the draft regulation would clarify the scope of oversight over crypto businesses, which are presently not subject to complete regulation.
The SEC aims to minimize potential risks, bolster investor protection, and prevent confusion regarding the regulatory supervision of deposit-taking and lending services. Meanwhile, the proposed regulation would disallow VASPs from accepting user deposits for staking, lending, or any other utilization of customer assets, providing interest payments on crypto holdings, or promoting such services.
As a result, the regulatory body has urged stakeholders and other concerned parties to submit their feedback and recommendations through the SEC’s website or email by April 7th, 2023.
Earlier, the watchdog introduced new crypto custody services, which could potentially necessitate VASP to establish a crypto wallet management system to ensure the security of customers’ funds.