The cryptocurrency sector in Thailand is experiencing rapid growth, with roughly 50 initial coin offerings (ICOs) and about 20 exchanges expressing interest in obtaining a digital asset license, according to the Securities and Exchange Commission (SEC) of Thailand.
“License approvals are being processed,” SEC secretary-general Rapee Sucharitakul told the Bangkok Post. “Many companies interested in opening digital asset exchanges have said digital assets and cryptocurrency trading in the Thai market are quite active.”
Those 50 token issuers and ICO organizers are seeking to raise funds from the public, but it remains uncertain whether all applicants will be granted operating licenses. The SEC highlighted that preparing a comprehensive whitepaper is one of the most challenging requirements. A compliant whitepaper must detail the product, token distribution, and how raised funds will be used, and must address concerns for both Thai and international investors.
Key requirements for companies applying to operate a digital asset business include being a registered company or listed firm with business operations based in Thailand, meeting the stipulated paid-up registered capital threshold, and demonstrating a robust operational infrastructure and sound financial condition. Additionally, company directors, executives, and significant shareholders must receive SEC approval.
In May, Thailand enacted new legislation to regulate cryptocurrency transactions and ICOs, designating cryptocurrencies and digital tokens as digital assets. Under this framework, the SEC is responsible for overseeing and regulating all cryptocurrency transactions and for enforcing customer identity verification procedures.
Finance Minister Apisak Tantivorawong stated that the law was necessary to create a comprehensive regulatory framework to prevent money laundering, tax evasion, and fraud related to cryptocurrencies and digital tokens.
Finance Permanent Secretary Sujjapongse Somchai emphasized that the regulation’s aim is not to promote cryptocurrencies, but to support the development and adoption of blockchain technology.
The Association of Securities Companies (ASCO), which represents the country’s securities firms, is reportedly considering a joint effort to launch a cryptocurrency exchange.
ASCO chairwoman Pattera Dilokrungthirapop told the Bangkok Post that many member securities firms are interested in entering the cryptocurrency market as operators of ICO portals and crypto exchanges, as well as serving as brokers and dealers in digital asset trading.
“We are confident that investors will prefer trading with us, since we have been in the securities trading business for a long time,” she said. “Investors can trust our trading system, which has secured asset preservation.”