Thai SEC Considers Lifting Investment Limits for Asset-Backed ICOs to Boost Digital Investments
The Thai Securities and Exchange Commission (SEC) has approved a revision of investment criteria in digital tokens, as well as digital asset custody service and other criteria related to digital asset business.
This move aims to provide adequate and appropriate investor protection mechanisms corresponding to the risks of digital assets. The SEC supports the use of technology in fundraising and seeks to benefit the growth of the capital market and the digital economy sustainably.
In order to achieve these goals, the SEC has made several important points. Firstly, it has removed restrictions on retail investors’ investments in digital tokens for investment (investment token), particularly those with real estate or real estate revenue streams as underlying assets and those with infrastructure activities or income streams from infrastructure businesses as reference assets.
The investment amount of retail investors was previously limited to no more than 300,000 baht ($8,780) per person per offering in all cases, but this restriction has now been lifted to be in line with the risk of the product.
Secondly, the SEC has reviewed regulations to support custodial wallet providers in providing services to digital asset business operators. Such providers must be related in a manner that has a major shareholder together if it is a listed company and its subsidiaries in the group of companies that have expertise, experience, and readiness to store customer assets comparable to financial assets. They must also have the expertise and readiness to manage relevant risks and comply with independence criteria as specified by the SEC.
Thirdly, digital asset business operators who wish to undertake other businesses must obtain other business approvals from the SEC before proceeding, in order for the SEC to more efficiently monitor digital asset business operations.
Finally, the criteria for the credibility of digital asset business operators have been improved by raising the qualifications of directors, executives, and major shareholders of digital asset business operators. Such persons must not be directors, executives, or major shareholders of companies whose licenses have been denied, revoked, or had license applications withdrawn within the six months prior to the date of submission of the application for approval.
They must also not have a history of participating in or supporting wrongdoings of companies involved in securities business, futures contracts, or digital asset business without permission. Digital asset business operators must not provide services through illegal digital asset operators to enhance the quality and credibility of the overall digital asset market.
The SEC has published a public hearing document on the principle of revising these rules on its website. Related and interested parties can express their opinions at the website or via email until April 27, 2016. This move by the Thai SEC aims to provide investor protection mechanisms corresponding to the risks of digital assets while also supporting the growth of the capital market and the digital economy sustainably.
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