Thailand has taken an unprecedented step and brought cryptocurrencies into the fold. The country's Securities and Exchange Commission (SEC) recently announced that they have legalized up to seven cryptocurrencies and also released new regulations that would govern Thailand's cryptocurrency industry.
These new regulations were announced on June 8 and are expected to come into effect towards the end of this month.
Thailand has been very progressive about cryptocurrencies and these new regulations are a natural progression of its policies. The SEC has been in charge of the country's cryptocurrency policy since May.
According to Tipsuda Thavaramara, the organization’s deputy secretary general, the SEC will regulate upcoming initial coin offerings (ICOs), dealers, brokerage firms and crypto exchanges. The SEC will also oversee the seven legalized cryptocurrencies that can be used for ICOs and for trading pairs. These seven cryptocurrencies were selected mainly for their credibility and their liquidity. The seven cryptocurrency are stellar, ripple, litecoin, ethereum classic, bitcoin cash, ethereum and bitcoin.
The regulations make it mandatory for businesses that deal with cryptocurrencies to obtain a license. The SEC expects 10 firms to apply for these licenses. Half of them will be crypto exchanges and the other half will be brokers and dealers. The deadline for license applications is August 14.
How To Get A Cryptocurrency License?
To get a license in Thailand, the first step is to be registered with the Finance Ministry. Next, firms will need to pay the upfront fee of 5 million baht, which is around $150,000. Half of the fee goes into token distribution and operations. There is also an additional fee for brokerage firms and digital asset dealers. Brokerage firms pay an additional 2.5 million baht and digital asset dealers will have to pay 2 million baht.
Besides the initial fee, companies will need to pay annual fees. Crypto exchanges will need to pay 0.002% of their total trading volume. Brokerage firms pay 0.001% of their total trading volume. There are minimums and maximum amounts that will govern these fees. For exchanges, the minimum fee is 500,000 baht and the maximum is 20 million baht. Brokerage firms have it lower with a minimum payment of 250,000 baht and a maximum of 5 million baht.
Another requirement is registered capital. Brokers need to have one million baht worth of registered capital. Dealers are required to have a higher amount which is fixed at 5 million baht in registered capital.
ICOs are also strictly regulated. To legally issue an ICO in Thailand, the portal needs to have at least 5 million baht in registered capital and needs to protect the ICO for at least a year.
Unauthorized sales will be fined twice the value of the transaction and the organizers may even receive jail time.