Thailand ICOs: A breath of fresh air in Thailand with the approval by the local Securities and Exchange Commission (SEC) of a broad regulatory framework for issuing and selling digital tokens through the first coin offerings (ICOs).
Thailand Icos: The details
It is a series of rules whose task will be to limit fraud and money laundering.
From July 16th, when the new rules will become effective, each ICO must receive the approval of the SEC, must be accompanied by detailed business plans (consistent with the company’s mission and tokens offered) and information plans.
About tokens: the number offered to institutional investors appears to be undefined while the number reserved, according to the latest provisions, must be limited to a maximum value of 300 thousand baht, equal to just over 9 thousand dollars (9,050).
Regarding the currency, the issuers of the ICOs are authorized to receive payments only in seven cryptocurrencies already designated (Bitcoin, Ethereum, Ripple, Bitcoin Cash, Ethereum Classic, Stellar and Litecoin) or, alternatively, in fiat currency represented by the Thai baht.
Not only that, but anyone who wants to launch an ICO must first create a company with an official headquarters within the Thai borders and have a minimum share capital of 5 million baht, or 150 thousand dollars. To this must also be added the obligation to authorize periodic checks by the supervisory authorities and ensure that the computer code or source code matches the information disclosed.
The tax framework was illustrated by the Thai Ministry of Finance: a fixed withholding tax of 15% on earnings that replaces the 7% VAT in force until May and then cancelled to give more scope to crypto operators.