No fewer than 50 enterprises have indicated an interest in obtaining ICO licenses in Thailand. This comes after the enactment of a framework for licensing several aspects of the cryptocurrency market in the country.
Clear ICO Regulations Encouraging Interest from Companies
According to the Thailand Securities and Exchange Commission (SEC), about 50 projects have expressed an interest in carrying out a cryptocurrency crowdsale. Already, three ICO portals have submitted their licensing application to the SEC. The Commission is, however, uncertain of whether all proposed projects will receive approvals.
According to the SEC, the most troublesome aspect of the ICO process for many projects is the creation of the white paper – a document that specifies the technical and commercial details of the business. The ICO white paper is usually the mains sales document for the project, and it gives prospective investors a sense of the project’s viability.
20 Companies Apply for Cryptocurrency Exchange License
The Thai SEC also revealed that about 20 companies have applied for cryptocurrency exchange licenses. Commenting on the development, the Commission’s secretary-general, Rapee Sucharitakul said:
License approvals are being processed. Many companies interested in opening digital asset exchanges have said digital assets and cryptocurrency trading in the Thai market are quite active.
According to the Thai SEC, it takes about 150 days to conclude the entire licensing process. The first 90 days are for the SEC to forward all necessary documents about the license application to the country’s Ministry of Finance. Then, the Ministry has 60 days to deliberate on whether to approve or reject the license application.
Cryptocurrency Regulations in Thailand
In the last few months, the Thai government has taken steps to firm up the cryptocurrency regulatory framework in the country. Earlier in the year, the government prohibited banks from facilitating cryptocurrency transactions.
Then in May, a royal decree was issued that which stated that there would be no prohibition of virtual currency trading in the country but that the industry would have to fall under strict regulations.
After banning ICOs, the SEC released a comprehensive framework in June for the regulation of the ICO process which came into effect in July. The framework specified all the licensing fees and operational guidelines for projects that wished to carry out a crypto crowdsale in the country.