Thailand’s Securities and Exchange Commission (SEC) announced last Friday it is conducting public hearings on proposed changes to initial coin offering (ICO) regulations.
According to the financial regulator, the changes could reduce investor redundancies while increasing safeguards for the broader public exposed to the digital currency market.
Under the current regulatory framework, investors are required to complete a knowledge test every three months before they can invest in digital tokens via ICO portals. The new proposal would allow investors to bypass repeat testing if they have previously passed the assessment.
Thai SEC opens hearings on ICO reforms
The proposed reforms will make changes in two regulatory parameters, including the reduction in oversight on day-to-day active investors and to provide more protection for new traders.
Institutional and high-net-worth investors already enjoy exemptions. However, the SEC wants non-institutional investors, those falling outside ultra-high-net-worth or high-net-worth categories, to complete a one-time knowledge test before investing, provided they have not already done so.
Alongside adjusting the testing timeline, the SEC proposes mandatory suitability assessments for all investors using ICO portals. The portals themselves would conduct these suitability tests and would need to be reviewed and updated at least every two years.
“These requirements are consistent with the regulatory frameworks applied to both securities and digital asset business operators,” the regulator stated in its press release.
Thailand regulators to improve the crypto environment in Southeast Asia
Jagdish Pandya, founder of Blockon Ventures and a blockchain advocate based in the UAE, said Thailand leads most of its Southeast Asian neighbors regarding crypto regulation, including Singapore, Malaysia, and the Philippines.
“Thailand has been a first mover for crypto regulations,” Pandya reckoned. “The SEC has provided all regulated activities and licenses much ahead of others.”
The pharmacist-turned-crypto startup founder believes that the proposed investor suitability and knowledge assessments will reduce speculative and uninformed participation in ICOs, helping to prevent them from falling for fraudulent projects and rug pulls.
He added that Thailand’s ICO portal is better than international benchmarks, including those in the United Arab Emirates and Hong Kong.
Thailand still in talks with the US government over tariffs
While the SEC focuses on investor protection at home, Thailand is still negotiating with the United States over reducing Thai import tariffs on US goods to zero percent.
Speaking to local news outlet The Bangkok Post, international economics professor Somjai Phagaphasvivat explained that Thailand’s limited free trade agreements (FTAs) could prevent it from matching Vietnam’s trade concessions to Washington. Vietnam has FTAs with 27 countries, which have helped it eliminate tariffs on most US imports.
“Thailand cannot offer the same kind of trade proposals to the United States as Vietnam did,” Somjai continued, “But in the future, we may have to consider doing so to be competitive.”
According to Somjai, the US-Thailand negotiations could touch on tiered tariff reductions. Products will fall into three groups: those taxed at the Most Favored Nation (MFN) rate, those with tariffs reduced below MFN rates but not fully eliminated, and goods granted a 0% tariff.
In a public statement dated July 14, Deputy Prime Minister and Finance Minister Pichai Chunhavajira admitted that US tariffs are a “tender subject for the government.”
“I will not bring trouble into the house,” Chunhavajira told policymakers.
Somjai supported the Prime Minister’s sentiment, propounding that certain domestic industries will be harmed if tariffs are removed too hastily. He suggested that Thailand might need to negotiate terms like tariff quotas or flexible product standards to protect industries with the most to lose.
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