The Thai government’s Regulatory framework to regulate digital Asset-related transactions came into effect on May 14 after it was published in the Nation’s Royal Gazette. Bangkok Post Reports May 13, 2018
The decree defines cryptocurrency as “digital assets and digital tokens” and confines them under the regulatory jurisdiction of the Thai Security Exchange Commission (SEC).
According to the Publication, SEC has four primary responsibilities. First is to regulate the Cryptocurrency issuance, ICOs, and digital asset businesses. The second is to set the levies and the standard requirements for the registration and sanction of digital currencies and their operators. Third, to develop a guideline for dealing with potential problems. Fourth, concerns all other areas not previously mentioned.
Reportedly, “All sellers trading Cryptocurrency or digital assets are required to register with the SEC within 90 days of the law taking effect.” the BangkokPost wrote, adding that: “Sellers of digital tokens unauthorized by the SEC will be fined no more than twice the value of the digital transaction or at least 500,000 baht ($15,703). They could also face a jail term of up to two years.”
According to the Bangkok Post, Thailand Finance Minister Apisak Tantivorawong in March stated that the new regulation was crucial to comprehensively regulate virtual currencies and tokens to prevent money laundering, tax avoidance, and crime. Adding that: “It was not meant to prohibit cryptocurrencies, ICOs, and other digital asset-related transactions, but to protect investors.”
The decree has undergone several amendments since it was first presented in draft form in March 2018. Awaiting the finalized crypto regulations, uncertainty triggered the Thai central bank to ban domestic banks from cryptocurrency related trading in early February.