Crypto regulations in Thailand.

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Avatar for SnowUnderSun
4 years ago

Many people have imagine about Thailand is around sea, elephants, nightlife, exotic nature, thai smile etc.

Crypto regulations are less known subject. I have sales mind, not a lawyer background. ( DYOR )

 

Below is limited information about crypto regulations in Thailand. 

Started in 2017 and announced in May 2018. One of the most developed regulations in the world and still have amendments every year due to the lack of working model another country to copy.

 

1 - Governmental instutitions related to crypto and approach.

a) Bank of Thailand

b) Ministry of Digital Society and Digital Economy 

c) Securities and Exchanges Commission ( SEC ) of Thailand.

"Cashless economy" is one of the major part in "Thailand Industry 4.0" approach

Though competition for being a hub at blockchain industry in South East Asia. look my other posts for more info.

legal base : Digital Assets Business Acts and amendment in Revenue Code.

 

2 - Exchanges :

before opening a crypto exchange, entrepreneur should apply for auditing and licencing.

a- Licence fee should be paid to local SEC.

b- exchange entity should be set up in the Thailand as company.

c- Minimum paid capital for crypto exchanges is 50 million Baht which is equal to 1.6 million USD.

d- Exchanges should declare financial statements to public for transparency.

e- Exchanges should show to public about proof of all ( own exchange funds and customer funds without violating privacy of customers ) funds in sum and in details. should show as realtime for transparency and recordkeeping should match. see in link.

After given transition period, 4 crypto exchanges and brokers for merchants were approved but 2 were disapproved due to the not meet criterias.

BX, BitKub, Coins th and Satang Pro are approved. BX closed already.

f - KYC and a Thai bank account in Thailand is a must for open account. Name should match, can not withdraw to other person's bank account to prevent hacking.

g - For Individuals who trade on exchanges are subject to %15 tax on annual capital gains and also witholding tax. 

 

3- ICOs - IEOs :

ICOs can be done only in "ICO portals" which should not be exchange. Being ICO portal is also required licencing and strict financial conditions.

ICO offerings should be in Thai Baht or in CryptoCurrency. ( Cryptocurrency has different legal meaning in Thailand, cover only few coins. ) 

http://www.mondaq.com/x/736566/fin+tech/Baht+Blockchain+Bitcoin+CryptoBusiness+In+Thailand

Licenced liable ICO portals are :

Longroot Thailand (longroot.co.th)

T-BOX Thailand (tbox.trade)

SE Digital

they are approved from SEC Thailand.

Minimum paid capital for ICO portals is 5 million Thai Baht ( 160,000 USD )

For entity who wants to ICO in Thailand should established as company in Thailand. All executives of company should have clearance from SEC. ICO offering company should have "solid" business plan. That company must have audited financial statements. all should be done before applying SEC to sell ICO.

 

4 - Cryptocurrencies, security tokens, utility tokens.

we say crypto currency for all coins-tokens in short way but legal definition in Thailand is categorization.

2 categories ( crypto currencies and digital tokens )

In this year list, Bitcoin - ETH - Ripple - Stellar ( also Thai Baht ) defined as crypto currencies.

all others are defined as Digital tokens. (1)Security Tokens and (2)Utility tokens. see definition in above infopic.

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