Thailand is expected to issue regulations on cryptocurrencies and initial coin offerings (ICOs) by the end of June, according to the country’s Securities and Exchange Commission (SEC) chief.
According to Rapee Sucharitakul, SEC secretary-general, a public hearing on the matter is expected to take two to three weeks, reports Reuters. This is because investments in digital currencies and ICOs are ‘complicated and carry high risks.’
Yesterday, it was reported that a new decree had been put into place by Thailand’s ministry of finance that aims to control and regulate cryptocurrencies and initial coin offerings in the country. As per the law, the SEC has the authority to regulate digital assets as well as verify the identity of clients. The law also stipulates that sellers and operators of the assets are required to register with the SEC within a 90-day period.
However, the new law, which became effective yesterday, states that:
…unregistered token brokers or those who perform token transactions through unregistered brokers will face a jail term of up to two years and fines of at least two times the token values, up to a maximum of 500,000 baht (S$20,930)
Additionally, fraudulent filings face a possible five-year jail term, whereas ‘those who carry out unauthorised business in digital assets face jail terms of between two and five years,’ the report added.
In March, Finance Minister Apisak Tantivorawong stated that there will also be a 15 percent withholding tax on capital gains on each digital transaction.
This move from the country’s SEC follows an announcement from the country’s central bank, the Bank of Thailand. In February, it said that financial establishments are banned from getting involved with digital currency transactions. At the time, it was reported that there was fear of possible problems with unregulated banking. Bank clients are also prohibited from using credit cards to purchase cryptocurrencies.
According to Reuters, the Bank of Thailand is going to wait for the SEC to announce other regulations before it takes action.
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