Thailand’s Securities and Exchange Commission (SEC) reportedly said yes to country’s first initial coin offering (ICO) portal. The portal would oversee the issuance blockchain based tokens.
SEC’s Approval for Unnamed ICO Portal
However, it is delayed but SEC Thailand has finally approved the dedicated ICO portal which was announced in late last year. It’s worth to note that this dedicated ICO portal is yet to be named.
The ICO portal with Thai SEC’s approval is on forwarding step – nevertheless, the approval from other central agencies such as Commerce Ministry is still pending. As for now, the status of ICO portal is almost ready but one step away – as the other agencies are yet to approve it. However, Archari Suppiroj, director of the fintech department at the SEC confirm that other bodies are also reviewing to offer green signal. Nevertheless, the time-frame of ICO project from this portal is not specifically determined, but the director hints as near future. Suppiroj Said;
“The first ICO deal will be available for [a] public offering in the near future under the digital asset royal decree…
Per the announcement, the portal will be held responsible to review ICOs, prove smart contract source codes, conduct due diligence, and also screen know-your-customer process (KYC). Concerning the trends of ICO and the concept it carries, she said;
ICO market has started to graduate from project-based and intangible ideas to ICOs backed by physical assets such as real estate.
Guidelines on STO is on Way
While Thailand SEC’s approval is only concerning the ICO, the concept of tokenization will not be served under this – since the law for securities is different. In particular, companies with STO will have to register under the Securities and Exchange Act in Thailand.
However, more likely, the regulators will soon issue separate guidelines for Securities token offering (STO) as well. As confirmed by Archari Suppiroj;
In the future, the SEC will issue a criterion that allows companies to apply tokenization to securities and other assets. This will help bridge the digital asset royal decree and securities law.”
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com