Thailand’s Securities And Exchange Commission (SEC) has approved the first initial coin offering (ICO) portal in the country reports local news outlet, the Bangkok Post. The SEC are also likely to issue criteria for applications for securities token offerings (STO). Security tokens are a portable device that authenticates a person’s identity electronically by storing some kind of personal information.
The SEC’s board of directors have authorised the first ICO portal which helps screen ICOs, conduct due diligence, prove smart contract source codes and verify the know-your-customer (KYC) procedures.
It is being “finalised for official approval with the relevant government agencies such as the Commerce Ministry,” Archari Suppiroj, Director of FinTech at the SEC told the Bangkok Post. “The first ICO deal will be available for public offering in the near future under the digital asset royal decree”. According to Suppiroji, the ICO market has began to graduate from project-based and intangible ideas to ICOs backed by physical assets such as real estate.
Ms Suppiroj also said that the operator of the authorised ICO portal is a foreign company, but did not name who.
Jirayut Srupsrisopa, co-founder and chief executive at Bangkok-based Bitkub Capital Group Holdings, said all assets can be digitised and tokenized with blockchain. “We can trade property, diamonds, gold or even intellectual property with a T+0 settlement [period] on digital platforms”. He added that the market has high potential to grow because the law has been set.
Listed Companies Waiting To Place ICO Deals
Seamico Securities has partnered with Elevated Returns, a financial group focused on digitising traditional financial assets, and blockchain project Tezos to expand business operations in Thailand. They aim to tokenize real estate businesses worth US$100 million.
Last December, the Thai SEC said they wanted to consider easing the rules that form a “barrier” to ICOs. Tipsuda Thavaramara, general secretary of the Thai SEC said at the time: “The proposed guideline is an attempt to find greater equilibrium in the regulatory process and reduce regulatory impediments, while taking risk management and investor protection into account”.
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