Thailand Introduces Legal Framework for Cryptocurrency and ICOs
Thailand’s cryptocurrency exchanges and initial coin offerings (ICO) are now required to register with the country’s Security Exchange Commission (SEC).
The regulatory framework for cryptocurrencies and ICOs which came into force on Sunday tasks the SEC to control and regulate cryptocurrencies. Under the new law, domestic crypto exchanges, ICO operators and independent crypto brokers and dealers are required to register with the SEC within 90 days of the law taking effect.
Sellers of digital tokens unauthorized by the SEC will be fined no more than twice the value of the digital transaction or at least 500,000 baht ($15,703 USD). They could also face a jail term of up to two years. Those who allow others to use their accounts to carry out transactions can be jailed up to one year and fined up to 100,000 baht ($3,141 USD).
The law was proposed by the Finance Ministry in February of this year following the Bank of Thailand’s ban on cryptocurrency transactions to prevent possible cases of fraud and misconduct.
“The new law to comprehensively regulate cryptocurrencies and digital tokens is necessary to prevent money laundering, tax avoidance, and crime,” Thailand Finance Minister Apisak Tantivorawong said at the time.
“The new law is not meant to prohibit cryptocurrencies, ICOs, and other digital asset-related translations, but to protect investors.”
The Bank of Thailand (BOT) said that it will wait for the SEC to announce other details of the regulations before making a stance on cryptocurrencies and ICOs. In February, the central bank prohibited domestic banks from crypto trading and investment due to regulatory uncertainty.
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