According to reports, the Securities and Exchange Commission (SEC) of Thailand is considering removing the initial coin offering (ICO) investment cap for private buyers in an effort to increase the amount of asset-backed digital investments made in the nation. A private investor's maximum investment in a given digital coin offering is currently THB 300,000 ($8,800), but the government wants to lift this cap to allow for investments in infrastructure and real estate-backed ICOs. However, the SEC notes that the new set of rules would increase investors risk exposure and has opened an open hearing to get public opinion.
SEC to Require Digital Asset Operators to Apply for Permission to Expand to Other Businesses
The SEC is also reportedly preparing to require digital asset operators to apply for permission from the regulator to expand to other businesses, with additional costs for compliance with the new regulations to apply. According to the SEC, the revision of the regulation aims to enhance the effective monitoring of digital asset operations and reduce risks that might affect investors, digital asset operators, and the market.
Thailand SEC Cracks Down on Digital Asset Depository Services
Thailands SEC is reportedly cracking down on digital asset depository services in the aftermath of crashes experienced by crypto lending platforms last year. In recent weeks, several authorities have issued warnings that much more decentralized finance (DeFi) networks are in danger of collapsing. The SEC wants to make it illegal for cryptocurrency company owners to accept deposits of digital assets and then use those deposits to borrow money or make investments in order to reimburse the investors. The regulator also plans to ban advertising or soliciting the general public or conducting any activities that would support deposit-taking or lending services.
New Regulations to Govern the Custody of Digital Assets Held by Cryptocurrency Operators
Thailand recently released a number of new laws for cryptocurrency companies, some of which have angered the general populace. The nation has put forth new regulations that would control who has possession of the digital assets that bitcoin exchange providers hold. The current regulations already call for cryptocurrency platforms to share user information with authorities whenever money is moved between businesses in order to stop the rising number of illegal activities that hide behind the global cryptocurrency industry.
SEC Aims to Protect Local Investors
Thailand‘s SEC is stepping in to ensure maximum protection for local investors and minimize the general public’s risks when interacting with the sector. It explains that these unexplored and uncharted technologies put consumers at risk, where the lack of regulation often covers fraud, completely illegitimate claims about valuation, speculation, as well as criminal dealings. As a result, the regulator aims to prohibit digital business operators from accepting digital assets and paying returns to depositors.
Conclusion
The proposed regulatory changes in Thailand are aimed at enhancing the effective monitoring of digital asset operations and reducing risks that might affect investors, digital asset operators, and the market. The SEC is seeking public opinion on the proposed removal of the investment limit for retail investors in ICOs, noting that the new rules would increase investors risk exposure. Meanwhile, the crackdown on digital asset depository services and proposed guidelines for custody of digital assets held by cryptocurrency operators aim to protect local investors and minimize risks associated with the sector.
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