Thai cryptocurrency exchange which goes by the name of TDAX has paused the registrations of all ICOs for a period of 2 weeks. This is in response to the announcement by the Securities and Exchange Commission of Thailand that it will be launching the regulatory framework for ICOs pretty soon.
Currently, the exchange was in the process of launching 5 to 6 ICOs. These ICOs will most likely be delayed now. This news also came in response to the suspension of the account of the exchange by Bangkok Bank. The bank suspended the account of the exchange this weekend.
According to the founder of the exchange, owing to the lack of proper legal jurisdiction surrounding cryptocurrencies, the bank banned the account of the cryptocurrency exchange. Bangkok Bank is the 1st financial institution in the country to completely halt transactions with cryptocurrency and blockchain related businesses.
On the other hand, however, the entire business of the exchange has not been audited. It already has bank accounts with 3 other banks. According to the exchange, it will soon be applying for an ICO license with the Thai SEC. This will ensure that it is able to operate and launch ICOs quite easily pretty soon.
ICO regulations in Thailand
Even though the exact details are not out yet but it is reported that ICO regulations will require companies to have a capital of 3 million baht or about $ 160,000. On the other end of the scale, other sources put the capital requirements at 300,000 baht or about $ 9500. There are many speculations regarding the upcoming rules and regulations of the ICO market. It remains to be seen what exact regulations are unveiled by the authorities. Till then, speculations will continue regarding the rules and regulations pertaining to ICOs.
The Central Bank of Thailand, via a circular, has mandated that no Thai banks will trade in cryptocurrencies or invest in cryptocurrencies. The circular was issued to the banks just last week. This circular was limited to just the banks. The cryptocurrency exchanges, as well as other blockchain-based businesses, were not impacted by it.
With the upcoming regulations, it remains to be seen whether the ICOs can be launched on Thai exchanges or not. Already, with the different countries coming out with different rules and regulations, some of the investors are already barred from participating in ICOs. It remains to be seen whether the same will be the case with citizens of Thailand.