In line with a local news report by ‘Bangkok Post,’ the SEC reportedly initiatedaninvestigation into digital tokens and ICOs that are being promoted on social media platforms for investment,and traced9caseswherepromoted digital assets had not beenlicensedby the market regulator.
In line with the SEC, the alleged digital assetsand ICOs have neither filed an application for the SEC’s approval, nor have they metthe requiredqualifications and hadsensiblesmart contracts assessed by ICO portals. The SECaforementionedthatpeople whohaveinvestedwithin thesealleged assetsought tobecautious of associated investment risks.
The SEC reportedly reiterated a warningconcerningPonzi schemes that persuadeindividualsto speculatein digital assets by promising investment returns generated from tokens.Adding further the regulator’s explained:
“Informationdisclosure actfor investment decision-makingis additionallyinadequate,whereasthese digital assetswon’thavespareliquidity to tradeand can’tbeconvertedintoCash.”
Earlier in Aug this year, the SECaforementionedthat just aboutfiftyICOs expressed interest inbecoming certified following the Finance Ministry’s announcement to introduce ICOlaws. The authorizationschemecan takes upto 5months as upon submission ofanapplication, the SEC transfers the document to the Finance Ministryinninetydays. After that, the Ministry hassixtydaysto forma decisionwhether or notto approve a license.
Even later that month, the SEC approved 7 businesses to conduct cryptocurrency operations asa part ofthefomalizationof the country’s domestic market. The move formsa part ofa package of “transitional” rules governing crypto businessesin operationalin Thailandbeforethe primarytrancheoflawsthat came into effect on 14th May.
The 100-section law defines cryptocurrencies as “digital assets and digital tokens,” and brought themunderneaththeregulativejurisdiction of the SEC. Thai’sminister of finance‘Apisak Tantivorawong’ reportedly assured that the new measuresaren’tsupposedto bancryptocurrencies or neither the ICOs.