The Commission on securities and exchange Commission of Thailand (SEC) has published formal guidelines for primary offerings of tokens (ICO). The rules contain requirements for the portals and the organizers of the ICO, as well as the who can invest in tokens. For a better understanding of the regulation, the Commission provided a series of infographics.
The new rules come into force on 16 July and is subject to the law of Digital Asset Management Act BE 2561 governing the treatment of cryptocurrencies in the country.
The Secretary-General SEC, RAPI Sucharitakul explained that the company «wishes to run the ICO must go through the portal. ICO». That is, first data portals must obtain the approval of the SEC. The platform, which plans to function as a portal, ICO, submits the application for obtaining the permission of the Commission – a process that can take up to 90 days. «After the issuance of the approval portal SEC will begin to consider applications for the production and sale of digital tokens», — he said.
The organizer of the portal. ICO may be a company registered in Thailand, with a registered capital of not less than 5 million baht (about 150 thousand USD). Portals ICO must verify the status of investors, their personality and risk exposure. The Commission clarifies:
«The issuers of tokens can make a baht or cryptocurrency, including BTC, BCH, ETH, ETC, LTC, XRP and XLM (Stellar)».
Who can invest in ICO
The SEC also sets rules for investors in ICO, dividing them into four main groups. The first group includes institutional investors. The second group consists of retail investors with a capital of not less than 70 million baht (2.1 million) or with an investment size of not less than 25 million baht (752 $ 785). The third group includes venture capitalists and private investment firms. The fourth to last group included all other retail investors, however their investment is limited to 300 000 baht ($9 034) on man and the ICO project, or not more than 70% of the total volume of produced tokens».
As regards taxation, the Minister of Finance of Apisak Tantivorawong in March announced the introduction of 15% withholding tax on profit from trading digital tokens and cryptocurrencies. In addition, we will apply the 7% value added tax, which, however, will not be charged with retail investors.