Thailand regulator considers lifting retail investment limit for ICOs
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The Thailand Securities and Exchange Commission (SEC) is considering lifting the retail investment limit imposed on initial coin offerings (ICO). The regulator currently has a limit of 300,000 baht, equivalent to around $8,800, for ICOs. Lifting the limit is aimed at stimulating more investments in digital tokens.
Thailand’s SEC explores lifting retail investment limit for ICOs
Reports by a local media publication, Bangkok Post, said that the Thai SEC had opened a public hearing on lifting this limit. The public hearing will remain open until 27 April as the regulator seeks public opinion on removing the limit for asset-backed ICOs. If this limit is lifted, it will also impact real estate and infrastructure ICOs.
Under the current regulatory regime, retail investors can invest up to 300,000 baht in a project using an ICO. According to the regulator, revising this requirement will lower risk and enhance the supervision of digital asset products.
The Thai SEC said that “the revision of the regulation is aimed at enhancing effective monitoring of digital asset operations and reducing risks that might affect investors, digital asset operators, and the market.”
The SEC further said that lifting the ICO limit for retail investors would support additional retail investments and increase the risk exposure for these products. However, the regulator was also committed to lowering the risks associated with such products.
According to the SEC, a strict regulatory framework for digital asset operators would minimize the risks in this sector. As such, the regulator will require that all digital asset operators file for regulatory approval if they want to expand their operations into other sectors.
The new regulatory regime could increase compliance in the digital asset space. However, the firms offering digital asset services in Thailand would be subject to increased compliance costs as the regulatory regime shifts.
Cryptocurrency activities in Thailand
Thailand has one of the most strict cryptocurrency regulatory frameworks. Only a few cryptocurrency exchanges have the authorization to operate locally. Nevertheless, strict regulations challenge the industry’s growth in the country.
In 2021, Huobi, one of the popular cryptocurrency exchanges, announced halting its operations in Thailand. At the same time, the Bitkub exchange announced it was facing enforcement action.
Another cryptocurrency exchange in Thailand that is also considering shutting down its operations is Zipmex. The exchange allegedly failed to make a $1.25 million payment, which puts it at loggerheads with regulators.
The acquisition of Bitkub by Siam Commercial Bank, one of Thailand’s largest banks, also failed to materialize amid pending regulatory issues. The acquisition could have aided in legitimizing crypto activities in the country.
Regulators in Thailand have also imposed strict requirements on promoting and advertising cryptocurrency firms to lower the level of risk. Companies are required to share information on their advertising terms with the regulator. The country also has a regulatory requirement that bans any crypto payments but also supports investment and trading.
