It has been nearly three years for the reason that Emergency Decree on Digital Asset Enterprise Operation B.E. 2561 of Thailand (“DA Legislation”) got here into pressure on 14th Might 2018. Since then a number of implementation guidelines have been issued by the Ministry of Finance (“MOF”), the Securities and Alternate Fee Thailand (“SEC”) and the SEC Workplace. This text provides an summary of the implementation and apply of the DA Legislation from Might 2018 to February 2021.
1. Allowed Cryptocurrencies
On 11th September 2018, the SEC Workplace introduced a listing of seven cryptocurrencies which have been allowed for ICO investments and transactions and base buying and selling pairs. They’re Bitcoin, Bitcoin Money, Ethereum, Ethereum Traditional, Litecoin, Ripple and Stellar. Nonetheless, the SEC didn’t acknowledge or certify that they’re a authorized tender. Additionally six months later, the SEC eliminated Bitcoin Money, Ethereum Traditional and Litecoin from the record.
2. Digital Asset Enterprise Licenses
As of 15th February 2021, the MOF has issued 14 licenses to 11 operators as follows:-
The MOF rejected some functions for digital asset enterprise licenses as a result of their main working methods, similar to asset custody system, KYC system, IT safety and cyber safety system, failed to fulfill the SEC and the Anti-Cash Laundering Workplace (“AMLO”) necessities.
3. Preliminary Coin Providing (“ICO”) and ICO Portals
Numerous corporations have expressed curiosity in launching their ICO initiatives to lift funds underneath the DA Legislation. Nonetheless, not one of the ICO initiatives has been launched.
Launching an ICO wants an ICO portal to conduct a due diligence on the challenge, evaluate and confirm the whitepaper and the good contract supply codes and to do a number of different issues. An ICO could be provided solely by the platform of an ICO portal licensed by the SEC.
As of 15th February 2021, the SEC has granted ICO portal licenses to 4 corporations. They’re Longroot (Thailand) Co., Ltd., T-Field (Thailand) Co., Ltd., SE Digital Co., Ltd., and BiTherb Co., Ltd.
4. Fund Supervisor and Advisor
On 19th October 2020, the MOF issued its Notification on Different Further Digital Asset Associated Companies B.E. 2563, efficient from 27th November 2020, so as to add the “Digital Asset Fund Supervisor” and the “Digital Asset Advisor” as two new varieties of digital asset enterprise operators. They’re required to acquire particular licenses from the MOF to function their enterprise in relation to digital tokens and cryptocurrencies.
5. Advisory Unit
Ranging from 1st January 2021, every digital asset enterprise operator is required to ascertain an advisory unit inside its group to oversee its compliance with the DL Legislation and associated rules. That is the requirement underneath the SEC Notification Nor. GorTor. 36/2563 re: Institution of Advisory Unit of Digital Asset Enterprise Operators dated 2nd December 2020.
The duties and obligations of the advisory unit embody giving recommendation, monitoring inside compliance, updating the operator on new legal guidelines and rules, making ready an annual compliance plan and an annual compliance report. The unit should work independently from the administration of the operator and report on to the board of administrators of the operator. The chief of the advisory unit will need to have the {qualifications} and should not have the prohibited traits prescribed by the SEC.
