Approval of Cryptocurrencies Does Not Make It a Legal Tender

July 14, 2019 Off By Steven Anderson

About four new cryptocurrency service providers have been approved in Thailand.  Four new cryptocurrency operators are to legally operate vide the approval of Thai Securities and Exchange Commission. The government has officially approved the first three digital token portals in the country.  There are new rules, conditions, and procedures which have been introduced for digital asset business.

The current regulatory framework for digital assets in the country currently provides for cryptocurrency and digital tokens.  However, separate licenses are required to operate cryptocurrency and digital tokens.

Concerning ICOs, if the seller should sell digital tokens, then they need to get approval from the SEC.  The tokens can be sold only through SEC-approved ICO portals.

The Fiscal Policy Office of the Thai Government has published the follow-up regulation from the SEC entitled, “Rules, Conditions, and Procedures for Digital Asset Businesses.”  This will come in to effect from Jan 1, 2000.

The capital requirements for digital asset businesses are outlined in the rules.  In March, the Thai SEC announced that about four cryptocurrencies had been approved, which includes BTC, ETH, XRP, and XLM.  However, the SEC has clarified that approval does not make it a legal tender.

Sunisa Thamphiban, Legal and Development Department Assistant Director at Thai SEC stated, “The Digital Asset Act” focuses to “supervise the middleman that will act as an intermediary in the exchange of digital assets.”

She further stated that they need to cooperate and work in compliance with the requirements set forth by the SEC and the office of the Anti-Money Laundering Committee to “prevent the use of digital assets for money laundering.”

Per the Malaysian Reserve, the Malaysian Securities Watch Dog gave three cryptocurrency exchanges the go-ahead signal to operate in the country in June 2018.

Despite the approval being temporary, the approval process alerted Malaysian investors and made them curious about the cryptocurrency and the exchanges.

David Low stated, “We have many queries from investors…it has definitely increased, and our investors mostly ask when will they be able to sign up and deposit their money again. More like triple queries have been received.”

The regulator has stated that anyone who is offering ICO or virtual currencies should pass through SC.

The temporarily licensed exchanges will currently trade only in Bitcoin, Ether, and Ripple.

Thailand and Malaysia are striving to make the cryptocurrency industry thrive with due regulation in place.

  • 1