Thailand Traditional Securities Firms Catches Bitcoin Fever, Set to Launch Joint Cryptocurrency Exchange
Even with the present crypto market slump, positive vibes are still emanating from the global cryptosphere. In the latest development, financial firms registered with Thailand’s Association of Securities Companies (ASCO) are looking to create a jointly-owned digital currency exchange.
Joining the Crypto Bandwagon
According to a Bangkok Post report on July 2, 2018, quite many companies in the Thai finance sector have expressed tremendous interest in launching cryptocurrency exchanges, an initial coin offering (ICO) portal as well as becoming digital assets broker dealers in the region.
Amidst that backdrop, the ASCO is looking at the feasibility of establishing a virtual currency exchange that will be owned and run by securities firms in the region.
Chairperson of the ASCO, Mrs. Pattero Dilokrungthirapop has hinted that the Asco will assist firms in applying for an operating license with the Thai Securities and Exchange Commission (SEC).
With a securities business license, interested companies would be able to function as crypto broker-dealers, exchanges and more.
However, with the expensive nature of the license coupled with other operating costs, Pattera has made it clear that interested securities firms will be grouped, to make the process less burdensome on them while also enabling the companies to collaborate innovatively.
In a bid to ensure transparency and curb misappropriation of investors’ funds, traditional securities firms in Thailand are required by law to have the investors’ ‘property preservation system’ separated from the company’s assets.
“We are confident that investors will prefer trading with us since we have been in the securities trading business for a long time. Investors can trust our trading system, which has secured asset preservation,” Pattera said.
The Asco chief also stated that the body would seek more guidelines from regulators to allow securities firms to offer a vast range of crypto-linked services.
Amenable Crypto Regulation
It’s worthy of note that the Thai government has been hard at work drafting regulations for their digital currency space. In May 2018, authorities declared that cryptocurrencies are digital assets and digital tokens, as such firms looking to offer crypto-related services including initial coin offerings (ICOs), cryptocurrency exchanges and more, are required to register with the Thai SEC within 90 days, while also making efforts to receive approval from the nation’s Finance Ministry. At current, profitable cryptocurrency transactions attract a 15 percent capital gains tax.
Per the report, a considerable number of firms have shown interest in obtaining a digital assets license. However, the SEC has stated that “foreign firms interested in operating as ICO portals or crypto exchanges must set up domestic firms or team up with Thai residents to be granted a license.”
Similarly, on June 16, 2018, BTCManager reported that the Thai SEC had given five ICO projects the go-ahead to operate in the region when the cryptocurrency law takes effect.
Thailand’s latest soft stance towards all things cryptos within its shores is undoubtedly a bold step in the right direction. If all things work as planned, Thailand will become a formidable force to reckon with in the global cryptospace.