Around 50 prospective initial coin offerings have displayed interest in securing a licence from Thailand’s Securities and Exchange Commission. The news follows an approval of the licensing of digital currency businesses, which took effect last month.
Of the 50 Interested in Licenses, Three Have Applied Already
Since the Thai Finance Ministry announced that they would be accepting applications for licences late last month, there has been considerable interest from those hoping to run an initial coin offering in the nation. According to the Bangkok Post, the SEC secretary-general Rapee Sucharitakul said that there had been 50 organisations expressing interest already.
Of these 50 companies seeking a licence to operate in Thailand, three have already submitted an application with the nation’s SEC. Mr Rapee did, however, point out that it was unclear at this point how many of them would be successful.
In addition to those hopeful of running licensed ICOs in Thailand, there are around 20 companies seeking to operate officially as a digital asset exchange. Mr Rapee continued:
“Licence approvals are being processed… Many companies interested in opening digital asset exchanges have said digital assets and cryptocurrency trading in the Thai market are quite active.”
Following a firm making a filing for approval from the SEC, the regulator must pass the proposal on to the nation’s Finance Ministry. This can take up to 90 days from the day that the documentation is received at the SEC. The Finance Ministry then assesses the proposal over the next 60 days and will make a decision within the same time frame.
To be accepted for a licence, the SEC and Finance Ministry must be satisfied that the following criteria is met: being a company operating in Thailand, having paid-up registered capital, having sound financial status, and a well-prepared business plan. In addition, those individuals running companies seeking approval must also be green lighted by the financial regulatory body.
Earlier this year, NewsBTC reported on a Thai Royal Decree that sought to regulate cryptocurrency offerings, as well as the companies that comprise the emerging digital asset industry. The legislative change granted the SEC the power to issue licences for domestic companies seeking to raise funds using the ICO model.
Judging by the number of applicants already for an SEC licence, Thailand is keen to embrace the new funding method, as well as a future tokenised economy. The CEO of JIBEX, a domestic digital asset trading platform, told the Bangkok Post of his optimism regarding the space. Thuntee Sukchotrat stated:
“I believe that investors will invest in digital assets instead of stocks in the future. The performance of ICOs will rise in line with ICO project performance… The investment ratio of ICOs to stocks will be on par within two years.”