ICOs Players to Select Thailand as Their Launchpad
It appears that the companies that are keen on initial coin offerings (ICOs) are opting to move to Thailand as their launch pad. Though there are not sufficient numbers to support it, there is a possibility that it could become a trend in the upcoming months. One of the reasons to believe such a scenario is that at least five ICOs are expected to enter the cryptocurrency market anytime now. Incidentally, the move comes in the wake of the country’s plan to enforce fresh regulations.
New Rules to Legitimize
Significantly, there are as many as 45 registrations for the ICOs apart from the five that will hit the market soon. The primary reason behind it is the introduction of a fresh set of laws governing the digital coin sector later this month. Also, Thailand’s Securities and Exchange Commission (SEC) is adopting a positive approach towards the virtual currency sector while the United States’ SEC is terming it as security time and again. That has only irked ICO players, and if the reports are true, they were moving out of the United States’ jurisdiction.
Thailand’s regulator is yet to disclose the characteristics of the ICOS. However, its corporate finance director, Thawatchai Kiatkwankul, indicated that there were 50 ICO projects that are keen to raise funds from the capital market in the country. Of this, only five are ready to tap the market. Currently, the digital coin market is undergoing sluggishness in the face of newer regulations tightening the noose.
Despite promoting the cryptocurrency market within the country, the SEC director expressed his concerns about the growing risks connected with ICOs. Therefore, he was compelled to take precautionary efforts against any possible scams with the objective of hedging against highly risky investments. Additionally, the regulator is also keen to ensure that there is no shady scheme of ICOs as it is working with the portals.
Kiatkwankul indicated that those projects having commercial attribute could be accorded approval for fundraising activities in the country. In the past few months, Thailand has seen the introduction of legislation meant to streamline the digital currency sector apart from the ICOs, which are sometimes termed as controversial. The legislation got a royal decree finally after removing a few obstacles thus ensuring the certainty of becoming a law in the country.
The draft SEC has established a set of criteria for the enterprises that are keen to raise funds through the ICOs. They should satisfy the criteria to engage themselves in the activity. Accordingly, there should be a registered capital of US$156,600 or 5 million baht. For the retail investors, there is a cap of $9,340 or 300,000 baht as an investment in any single ICO. Alternatively, a maximum of 70 percent of the offered total value of the tokens would be available for them.
However, there are no restrictions in respect of ultra-high-net-worth and institutional investors. Officials from the country expressed their optimism that the regulatory changes would attract more blockchain related projects or the ICOs. The regulator is also gearing itself to meet the possible demand.