Thai Securities and Exchange Commission (SEC) has released a new regulatory framework concerning cryptocurrencies, as well as has legalized 7 various cryptocurrencies that have complied with the regulations. The measures were approved at the regulator’s June 7 meeting and are expected to go into effect later on this month.
These 7 cryptocurrencies are the fan favorites of:
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Ripple (XRP)
- Stellar (XLM)
The reasons for choosing these seven cryptocurrencies by the SEC were two: consensus credibility and the liquidity of the digital assets.
Thai SEC is expecting ten firms to apply for licensing, some of which may be crypto exchanges, and others, crypto brokers and dealers. Bear in mind, these currencies must register with the SEC within 90 days of the effective date and the participants must receive approval from the finance ministry. There is also an upfront fee of 5 million baht, which is the equivalent of $156,194. The funds are then separated into 2.5 million for the distribution of each token and for the operations of cryptocurrencies.
There will also be an annual fee for such crypto entities that will be calculated as 0.002% of the total trading volume for crypto exchanges and 0.001% of the total trading volume for brokerage firms. Each with a minimum fee of 500,000 Baht and 250,000 Baht respectively; and a maximum fee of 20 Million and 5 Million Baht will also be used to cap payments by both categories respectively. A publication concerning the matter stated,
“Registered capital for digital exchanges is stipulated at 50 million baht for a centralized exchange and 25 million for brokers, while a decentralized exchange is at 10 million and a decentralized broker is at 5 million.”
Anyone selling digital tokens without authorization will be fined. Such fines will be twice the value of the digital tokens. Interested parties within Thailand looking to engage in this business need to get in touch with the Finance Ministry for approval. Failure to comply can also result in jail time of up to two years.