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Cryptocurrency Law in Thailand
At Smart Legal Solutions, we are experts in Crypto license application in Thailand in accordance with the local digital assets regulations. Contact us today to assist you in the application of the suitable Crypto license for your intended business.
Initially, it should be noted that Thailand is one of the first jurisdictions in Asia to issue a legislation that specifically addresses cryptocurrencies and digital assets.
The laws regulating Cryptocurrencies and ICOs in Thailand are the Emergency Decree on the Digital Asset Businesses B.E. 2561 (C.E. 2018) ("Digital Asset Businesses Decree") and the Emergency Decree on the Amendment of the Revenue Code (No. 19) B.E. 2561 (C.E. 2018) ("Amendment of the Revenue Code Decree"), which came into effective on 14 May 2018.
The main regulator for the Digital Asset Business Decree is the Office of the Securities and Exchange Commission (the "SEC Office") and for the Amendment of the Revenue Code Decree is the Revenue Department.
Regulatory authorities periodically issue sub-regulations to stipulate the regulatory requirements and ongoing compliance for industry parties.
Offering of Digital Tokens:
ICO issuer license
Issuers must obtain prior approval from the SEC Office and must file a registration statement and draft prospectus with the SEC Office before the public offering. The offering of Digital Tokens can only be done through an SEC-approved ICO Portal.
Once an ICO Portal has received the SEC's approval, it will be obligated by law to conduct due diligence and a certain screening process. However, the inspection by ICO Portals is not the final stage of approval for a prospective issuer, as the SEC Office may still reject any proposed ICO project if it considers that the ICO project in question conflicts with public policy or on other reasonable grounds.
A portal must be a company (either private or public) established in Thailand with registered capital of not less than THB 5 million, with a proper operation system, suitable management structure, and sufficient responsible personnel to operate the portal. The financial status of the portal operator must be good and should not pose any potential risk to its customers.
A portal and its operation system must comply with the SEC Notification regarding the security of IT systems.
The directors, executive directors, and people with management power over the portal must not have any prohibited characteristics as prescribed by the SEC.
An ICO Portal is a provider of an electronic system for facilitating the offering of newly issued digital tokens. The ICO portal's duties include performing due diligence on the characteristics of digital tokens to be offered and qualifications of issuer, and ensuring completeness and accuracy of information contained in the registration statements, draft prospectus or any other information to be disclosed through the portal.
Operation of Digital Asset Business
Digital asset businesses in Thailand are categorized into three types: (1) digital asset exchange; (2) digital asset broker; and (3) digital asset dealer. All these operators must obtain a license from the Minister upon the recommendation of the SEC and must comply with certain regulatory requirements.
1.Digital asset exchange means a center or a network established for the purposes of trading or exchanging of digital assets, which operates by matching orders or arranging for the counterparty or providing the system or facilitating a person who wishes to trade or exchange digital assets to be able to enter into an agreement or match the order, in the normal course of business, excluding the center or network in the manner as specified in the notification of the SEC.
2.Digital asset broker means a person who provides services or holds itself out to the public as available to provide services as a broker or an agent for any person with respect to the trading or exchange of digital assets in the normal course of business, in consideration of a fee or other remuneration, excluding the brokers or agents who act in the manner as specified in the notification of the SEC.
3.Digital asset dealer means a person who provides services or holds itself out to the public as available to provide services with respect to the trading or exchange of digital assets for its own account in the normal course of business outside the digital asset exchange, excluding the dealers who act in the manner as specified in the notification of the SEC.