Lately, Thailand is emerging as one of the leaders in Crypto-currency. Many states in the world are aiming to find out ways that would help them set the right regulation when it comes to the implementation of Crypto-Currencies. However, Thailand has already found ways through which it can bring crypto-currency into the mainstream. The country is finding ways through which they can develop their digital currency that will their own.
The country has shown huge progress in the last few years and now it is ready to provide licenses that will allow the exchange and transaction. Several other countries are attracted to the new venture and are willing to invest in the same. This is one notable progress that is made by the country. So far, the country has approved four currencies that can be used for business and these crypto business operators received their approval from the Thai Securities and Exchange Commission. Alongside there are three digital portals for tokens that were being approved by the country. This shows the significant interest of the country to venture into the digital currency world.
In Thailand, a company can now get a license for the exchange operation and broking these currencies. A company can now deal with both currencies and tokens however when it comes to operation and broking of token the company needs to achieve a separate license. The government of Thailand has approved four operators for digital assets.
These companies are allowed to provide several services which include exchange services for token and crypto. This also includes the brokerage services for token and crypto. However, this completely depends on the license that is being availed by the government.
Legislative Standards Set by the Country
There were some of the most progressive legislative standards being set by the country in the year 2017. These standards have set benchmarks when it comes to the functioning of crypto-currencies in Thailand. Now, it has become necessary that a registration process is being completed by the exchangers and sellers of cryptocurrencies.
This registration needs to be done with the SEC for selling and exchange of or currencies. In Thailand, four exchanges are being approved by the government. Bitkub Online Co. Ltd., Bitcoin Co. Ltd., and Satang Corporation are the three companies that provide all-round services for exchange and selling of digital assets however the other one in the list got the approval for only brooking and dealing of the currencies.
As mentioned earlier three ICO portals got approval from the government. The name of these portals is Longroot (Thailand) Co. Ltd. (Longroot), SE Digital Co. Ltd. (SE Digital) and T-box (Thailand) Co. Ltd. (T-box. Though some of the inspection process and development of the regulatory framework are pending these portals have been added to the commission’s website. These portals play a very important role in the regulation purpose of digital token.
Alongside the country also maintains a list of websites that are supposed to venture into the crypto-currency. The Thai government also introduced a fiscal policy that helps. It is important for any company to acquire the authorization for the Thai Government to have the currencies.
The New Reforms in the Law
The law of Thailand though of introducing new regulations for the crypto-currencies. One of the main purposes of the law is flexibility. The lawmakers have thought of ensuring the fact that flexibility is being offered to the regulations when it comes to the crypto-currencies. It was being figured by the lawmakers that the process of licensing for the company has become very complicated.
Since this concept is new so there needs to have a certain level of agility. This will make sure that the growth of digital assets in the country increases. Due to the complexities in the process of registration, it was seen that only a few companies could make it to the business. However, the lawmakers are in favor of the growth of crypto-currencies. This is one of the reasons why they believe in the fact that there should be a certain level of leniency in the law.
Certain amendments have taken place in Thailand. Though SEC is not in complete agreement with the new amendment it is believed that new laws introduced in this field will help in developing the country when it comes to the digital assets. The country among all the other countries in the world sees the fact that there is a potential of economic growth with Crypto-currency being a mainstream digital asset. This is one of the reasons the Government is tending to make all the possible changes in the process of registration.
The Penalties Associated with illegal Sales
Thailand also sees the risk associated with the unauthorized sales of crypto. This is one of the reasons why the country is also strict when it comes to the legal aspects of the same. For the same reason, the country also imposes strict penalties in the circumstance it is seen that illegal sales of token take place.
The government wants to preserve the whole process of growth and also tries to make sure that such digital assets are being prevented from fraud activities. There is some economist who is concerned about the functioning of the currency in the world.
To make sure that challenges associated with the illegal sales of the token are minimized there are strict penalties being imposed. However, at certain times it becomes complicated.
On one hand, there is a strict need for the regulation of token sales while on the other hand, the lawmakers are forcing upon the flexibilities of the licensing system. Like all the new processes and approaches that are being introduced in an economy, this also has to pass through the challenges.
For the same reason, the right step must be taken for the growth of digital assets in the country. It is also essential that the government and the lawmakers find a middle way that will help the growth and the development of such currencies and also ensure the economic growth of the country.
The Associated Threats of Crypto-Currencies
Along with the advantages that Crypto-currency will bring to the country certain challenges are associated with the same. It is being predicted that with the growth of crypto-currency there will be criminals who would look for digital assets as a major target. This will lead to an increase in money laundering cases in the country.
The economy of the country will face major challenges if such cases are seen often. Lawmakers have stated the fact that with the growth of such currencies in Thailand there needs to have a proper law that treats currency laundering as important as money laundering in any other form. Financial Action Task Force (FATF) is responsible for the detection of threats associated with digital assets.
The organization have already highlighted some of the major causes associated with the crypto-currency and also figured out some of the suspicious transaction associated with the same. While the government is showing keen interest in the implementation of such currency it is also necessary that certain regulatory measures are made strict. This will make sure that crypto-currencies being introduced to the economy will contribute to its growth.
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