Thailand Financial Regulator Adopts New Crypto Legislation

It seems like countries throughout the world are actively pushing for crypto regulation, as a trend has formed in this direction. One of the newest countries to do so is Thailand.

There, the Securities and Exchange Commission (SEC) has approved a new legislative framework for the regulation of digital currencies. The framework is bound to make it easier for ICOs to be carried out within the territory, while also legalizing 7 digital currencies, and establishing standards for fees and licensing requirements. Therefore, the new set of regulation will affect all aspects of the crypto market, including taxations, dealers, ICOs, brokerage firms, coins and more.

To kick things off, the framework has allowed the legalization of seven digital currencies, which can now be traded as pairs. These are Bitcoin, Litecoin, Ethereum, Ripple and Bitcoin Cash. Reasons for choosing include the fact that they do not actively promote privacy, while also providing better fund liquidity and credibility on the market.

Thailand’s SEC is reportedly expecting approximately 10 companies to apply for licenses that would give them the right to operate cryptocurrency exchanges. Applications must be submitted before the 14th of August, and the firms are expected to pay an upfront tax of 5 million baht, roughly equal to $156,000. It is believed that half of the fee will be used for crypto operations, whereas the rest shall be leveraged for token distribution. Brokerage firms on the other hand, must pay a 2-2.5 million baht fee.

However, the list of impending taxes does not end here. Exchanges will be required to pay an annual fee of 0,002% out of their total trading volume, with the minimum payable amount being of 500,000 baht. In an effort to increase user safety, crypto companies must meet a minimum registered capital requirement, this being of 50 million baht for exchanges, 25 million baht for brokers, and 10 million baht for decentralized exchanges.

Lastly, new ICO regulations mention that all ICO holders must register with the SEC 90 days prior to the token sale, with approval from the Finance Ministry being obligatory in order to conduct crypto-based business operations.

Based on everything that has been outlined so far, the regulations do not affect the common crypto users, but rather companies which operate on the market. It is believed that the legislative framework will bring about more safety to the market, while also limiting illegal operations.