Thailand has become the latest Country to permit Cryptocurrencies in its digital asset trading markets. The country's Securities and Exchange Commission (SEC) announced they have legalized seven cryptocurrencies and also released new regulations that will govern Thailand's growing cryptocurrency industry.
The new rules will come into effect later this month and will apply to stellar, ripple, litecoin, ethereum classic, bitcoin cash, ethereum, and bitcoin. The currencies were selected for their credibility and liquidity.
Tipsuda Thavaramara, the organization’s deputy secretary general, says the SEC will regulate upcoming initial coin offerings (ICOs), dealers, brokerage firms and crypto exchanges. The SEC will also oversee the seven legalized cryptocurrencies that can be used for ICOs and for trading pairs.
The regulations make it mandatory for businesses that deal with cryptocurrencies to obtain a license. According to the Bangkok Post the regulator expects about 10 intermediaries to apply for operating licenses and about half of these will be exchanges, with the rest identified as brokerage firms and dealers. The deadline for applications is August 14.
The SEC also published details of the licensing requirements and fees:
To get a license in Thailand firms will first need to register with the Finance Ministry. An upfront fee of five million baht will become due with further fees for brokerage firms and digital asset dealers of around two million baht.
Crypto exchanges will need to pay 0.002 per cent of their total trading volume. Brokerage firms pay 0.001 per cent of their total trading volume
Another requirement is registered capital. Brokers need to have one million baht worth of registered capital. Dealers are required to have a higher amount which is fixed at five million baht in registered capital.
ICOs are also strictly regulated. To legally issue an ICO in Thailand, the portal needs to have at least five million baht in registered capital and needs to protect the ICO for at least a year.