Thailand’s regulator issues new regulations on digital token offerings

bitcoin
A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration taken December 8, 2017. REUTERS/Benoit Tessier/Illustration

Thailand’s securities and exchange commission on Wednesday announced regulations on offerings of digital tokens to take effect from July 16.

Issuers of digital tokens must be a company registered under Thai law and will be able to offer such assets of an unlimited amount to institutional investors, ultra high net-worth investors, venture capital and private equity firms, the SEC said in a statement.

But they can only offer tokens to retail investors of up to 300,000 baht ($9,050) each, it said.

Issuers of such tokens can accept baht or cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple and Stellar, the SEC said.

In March, Finance Minister Apisak Tantivorawong said the finance ministry will impose a 15-percent withholding tax on gains from digital tokens and cryptocurrency trade.

There will also be a 7-percent value-added tax, but general investors will be exempted, he said.

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Reuters