In a recent revelation, the Thailand Securities and Exchange Commission (SEC) is planning to soften its stance towards digital assets. In the past months, the regulator has been observed to have made a few anti-crypto stances one after the other.
Sources reveal that the Thai SEC is preparing to soften retail investment restrictions related to initial coin offerings (ICO) to boost digital investments. An initial coin offering (ICO) is a type of capital-raising activity in the cryptocurrency and blockchain environment. The ICO can be viewed as an initial public offering (IPO) that uses cryptocurrencies.
According to an official announcement released by the regulator on Thursday, the agency is willing to lift the limit of 300,000 baht ($8,800) for asset-backed ICOs per person, planning to allow bigger investments in real estate and infrastructure-backed ICOs.
The Thai authorities are counting on this new move to help the country enhance local technological development. As the growth in the capital market and the digital economy escalates, it would enhance other sectors too. As stated in the official announcement of the SEC:
The revision of the regulation is aimed at enhancing effective monitoring of digital asset operations and reducing risks that might affect investors, digital asset operators, and the market.
With this, the securities regulator opened a new public hearing to collect feedback on the plan to remove the investment limit. It also noted that the new measures would increase investors’ risk exposure. Notably, the public consultation is scheduled to run until April 27.
Additionally, the announcement stated that the regulator plans to require digital asset operators to apply for permission from the SEC to expand to other businesses. Digital asset operators may also incur additional costs for compliance with new ICO regulations. Notably, the latest proposal by the Thai SEC leads a trail of other regulatory amendments targeting the digital asset market in the country.
However, it is important to note that the recent move from the Thai regulator is positive news for the crypto sector. The regulator has largely been infamous for prioritizing consumer protection and supporting stringent regulation of the sector.
At the beginning of the month, the regulator announced that it was preparing to organize a new public hearing to discuss a potential ban on crypto staking and lending services in the country. In relevance to that regulation, the authority has invited stakeholders and interested parties to submit their feedback and suggestions via the SEC’s website or email by April 7, 2023.
Before that Todayq News reported in December that the securities regulator was preparing to impose a strict set of regulations on the crypto sector, especially following the FTX crisis that occurred in November last year. It had also explicitly warned crypto advertisers to adhere to a code of conduct. It stated that advertising contains material that could deceive investors and raise the dangers of their investments.
Not just that, on January 17, the securities regulator issued new regulations mandating VASPs to establish a digital wallet management system to ensure efficient custody. These regulations highlighted three major requirements, including the policies and guidelines for monitoring the risk management of digital wallets and private keys.
Given this softening of the regulator’s stance towards cryptocurrencies in recent times following the series of anti-crypto announcements, it will be interesting to see all that unfolds for cryptocurrencies in the country.