Initial Coin Offerings (ICOs) and cryptocurrencies are becoming more and more popular for startups and well-established companies as means to raise capital for operations and business activities. This relatively new system has been carefully observed and discussed by government officials across the world. As of now, there are no clear laws and regulations in place to monitor these newer forms of funding. As cryptocurrencies have gained traction and the attention of the public, lawmakers have generally been adopting a repressive stance on the subject. However, on certain occasions, some nations demonstrate a progressive approach to virtual currencies. This is the case for South Korea and now Thailand.
The Thailand financial department and the Securities and Exchange Commission (SEC) have announced that a new regulation regarding ICOs will officially become effective next week. This new law is very positive for companies and start-ups as it authorizes ICOs and the raising of capital with digital currencies. These companies will require approval from the SEC but the way it will work will differ from a regular application process for those wishing to launch an ICO. Start-ups will be able to “offer” their ICO on an online portal and the financial regulatory authority will then choose the projects it deems acceptable and approve them. The idea behind this new law is that it can provide a safe and regulated environment to launch coin offerings, which is positive for both the government and the companies. Companies who wish to launch an ICO need to have at least $150,000 in capital.
This is not a completely new law, it has been drafted and discussed for months by politicians and lawmakers in Thailand. After being announced in May, it is now about to be introduced on Monday, July 16th. With this new regulation, Thailand becomes one of the first countries to openly accept and allow ICOs, which shows remarkable progression. Will other countries follow Thailand’s initiative and become supportive of ICOs? How will governments across the world react to the newfound popularity of this new means of raising capital?
TLDR: Thailand Securities and Exchange Commission will introduce a new regulation allowing companies to launch ICOs, effective on July 16th. It is one of the first countries to openly support raising capital with cryptocurrencies.