Exciting things are happening in Thailand as far as the crypto space is concerned. The country recently approved seven businesses to conduct crypto-related operations within Thailand. The government has been trying to formalize the domestic market for a while now, and this move appears to be another step towards that direction.
Five Exchanges and Two Dealers Approved
The statement released by Thailand’s Securities and Exchange Commission (Thai SEC) highlights all five exchanges and two dealers that have been allowed to operate in the country. These include Bitcoin Co. Ltd. (BX), Cash2coins Co. Ltd., Bitkub Online Co. Ltd., Coin Asset Co. Ltd., Group Co. Ltd. (TDAX), Digital Coin Co. Ltd. (ThaiWM), and Coins TH Co. Ltd.
The Need For Regulations
Cryptos had been unregulated in the country until May, when regulaitons were fully introduced to create a complete regulatory framework for cryptocurrencies.
According to the officials, this was done to protect investors from frauds and scams. Moreover, these regulations are also designed to prevent cryptocurrencies from being used in criminal activities, tax avoidance, and money laundering.
The 100-section law defines digital currencies as “digital assets and digital tokens,” and puts them under the control of the Thai SEC.
The Finance Minister spoke very positively of digital assets ensuring investors that the country had no plans to curb the growth of cryptocurrencies – as long as they are regulated.
The regulatory framework requires all crypto-related businesses operating in the country to register and meet all other legal requirements. The interesting bit, however, is that businesses were allowed to conduct operations while waiting for the license to arrive as long as they got one within 90 days of the deadline (May 14). Otherwise, they had to handle penalties.
More Applications Are Being Considered
The department is currently reviewing applications of two other crypto-related businesses. While a decision is yet to be taken, many are hopeful that two more businesses will soon get the nod from the government, adding to the growing list of legal and regulated crypto-businesses in Thailand.
In addition to this, there appears to be significant interest from ICO users as well. According to reports, over 50 businesses had applied for an ICO license, but only five had met the prerequisites required for an application to get accepted.
“Projects which can be [easily vetted] and have commercial attributes attached to them will be considered for fund-raising,” announced the Finance Minister.
With a regulatory framework and simple policies, Thailand may soon be a haven for crypto investors.
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