Thailand Sees Booming Cryptocurrency Industry As New Law Comes Into Effect

Regulators haven't committed to approving all 50 token issuers seeking licenses. Sucharitakul said the biggest hurdle involves the whitepaper requirement. Each ICO must document its product, explain how it distributes tokens, and detail how it will use funds raised from Thai and foreign investors.

To operate a digital asset business in Thailand, applicants must meet several criteria. They must be incorporated as a company or listed firm with Thai operations. They must maintain paid-up registered capital at specified levels, maintain solid financial systems, and keep finances in order. The SEC also must approve all directors, executives, and shareholders.

Thailand codified these rules through a royal decree in May that classifies cryptocurrencies and digital tokens as digital assets. The SEC took regulatory authority over transactions and customer verification. In March, Finance Minister Apisak Tantivorawong explained the measure would combat money laundering, tax evasion, and fraud. Finance permanent secretary Sujjapongse Somchai said regulators built the rules to support blockchain technology development.

The Association of Securities Companies, which represents Thailand's securities firms, plans to launch its own cryptocurrency exchange. Member firms have signaled interest in operating ICO platforms, exchanges, and trading desks for digital assets, chairwoman Pattera Dilokrungthirapop told the Bangkok Post. "Investors will want to trade with us because we've built trust over years in securities trading," she said. "Our platform has proven it can secure assets."