A regulatory framework for cryptocurrencies has recently come into effect in Thailand, as reported by Bangkok Post. The announcement stated that the regulatory framework which was developed by royal decree in Thailand and consisted of 100-section law was officially published in the local Royal Gazette with all the details.
As reported, cryptocurrencies were defined as “digital assets and digital tokens” in the recently confirmed law which brought the new currencies under the regulatory jurisdiction of the Thai Security Exchange Commission (SEC).
According to Thai Finance Minister, Apisak Tantivorawong, the new regulations have no intention of prohibiting cryptocurrencies or Initial Coin Offerings (ICOs) in the country; instead the local authorities have a rather favourable approach to the new technologies as long as they are regulated.
One of the main requirements of the royal decree, that is now in force, include for sellers of digital assets to register with the SEC within 90 days’ time. The source confirmed that a penalty for the failure of on time registration was set as up to twice the value of the unauthorized digital transaction, or at least about $15,700. There are even stricter measures for noncompliant sellers who depending on the case could also face a jail sentence of up to two years.
The source also informed that the responsible Ministry of Finance together with SEC are currently working on expanding the framework in the county. The main requirement will include all domestic crypto exchanges, as well as independent crypto brokers and dealers, to register with relevant authorities according to the procedures stated by the royal decree.
Minister Tantivorawong concluded that the measures which will be taken by the country’s authorities will focus on investor protection, as well as on prevention of the use of cryptocurrencies for illegal and criminal activities including money laundering and tax avoidance which are currently the main threats.