In line with a local news report by ‘Bangkok Post,’ the SEC reportedly initiated an investigation into digital tokens and ICOs that are being promoted on social media platforms for investment, and traced 9 cases where promoted digital assets had not been licensed by the market regulator.
In line with the SEC, the alleged digital assets and ICOs have neither filed an application for the SEC’s approval, nor have they met the required qualifications and had sensible smart contracts assessed by ICO portals. The SEC aforementioned that people who have invested within these alleged assets ought to be cautious of associated investment risks.
The SEC reportedly reiterated a warning concerning Ponzi schemes that persuade individuals to speculate in digital assets by promising investment returns generated from tokens.Adding further the regulator’s explained:
“Information disclosure act for investment decision-making is additionally inadequate, whereas these digital assets won’t have spare liquidity to trade and can’t be converted into Cash.”
Earlier in Aug this year, the SEC aforementioned that just about fifty ICOs expressed interest in becoming certified following the Finance Ministry’s announcement to introduce ICO laws. The authorization scheme can takes upto 5 months as upon submission of an application, the SEC transfers the document to the Finance Ministry in ninety days. After that, the Ministry has sixty days to form a decision whether or not to approve a license.
Even later that month, the SEC approved 7 businesses to conduct cryptocurrency operations as a part of the fomalization of the country’s domestic market. The move forms a part of a package of “transitional” rules governing crypto businesses in operational in Thailand before the primary tranche of laws that came into effect on 14th May.
The 100-section law defines cryptocurrencies as “digital assets and digital tokens,” and brought them underneath the regulative jurisdiction of the SEC. Thai’s minister of finance ‘Apisak Tantivorawong’ reportedly assured that the new measures aren’t supposed to ban cryptocurrencies or neither the ICOs.