The Deputy Prime Minister of Thailand has advised the regulators to formulate a framework for cryptocurrency transactions and initial coin offerings (ICO) within a month. The Thai Securities and Exchange Commision (TSEC) will take the job of creating a new law and regulate the ecosystem.
According to TSEC, the new laws will cover all the areas related to cryptocurrencies and ICOs, and it will also include rules for all the participants who are involved in this sector. Such as trading platforms, investors, cryptocurrency issuers. Furthermore, the state officials have stated that the new laws will prevent market manipulation and tax evasion.
The TSEC has asked the Thai Fintech Association (TFA) to become an advisor in the process of creating new laws. TSEC representatives have stated that TFA is the best choice for this position since it has much more experience in the crypto market. A factor that will help the regulator to understand better the cryptocurrency businesses.
Digital assets are new to everyone, and nobody knows everything, so all parties should be open-minded, learn about them, and set appropriate rules and regulations,” explained Korn Chatikavanij, Chairman of TFA.
According to Thai Finance Minister Aphisak Tantiworawong, tax issues should also be taken into account. We are curious to see what the Thai regulation will look like in concrete terms and are following the further developments.
Laws are Different in Thailand
In the past year, the regulatory bodies from Thailand have shown their concerns about the rapid growth of the cryptocurrencies and initial coin offerings (ICO). The National Council for Peacekeeping from Thailand formed by the country’s military has at the moment the control over all political activities.
Since 2014 when in Thailand it has been declared the “martial law”, the National Council for Peacekeeping has gained most of the power in the country. The chairman of the council Prayut Chan-o-cha is at the same time the prime minister of the country and any financial law has to go through the “Article 44” of the constitution.
While the Article 44 is more about maintaining peace it gives the leader of the country absolute power to over laws or actions that could undermine public space. Also, it provides the military with the permission to prosecute people for national security crimes. Besides that, the Article 44 gives the soldiers the possibility to stop news outlets or individuals that are publishing FUD news.
Since the laws are a lot stricter in Thailand, the TSEC in collaboration with TFA have discussed in a meeting that the new regulations for cryptocurrencies and ICOs should not be subject to the Article 44. Now they are waiting to see if the Leader of the country will allow that.