KANALCOIN NEWS – Thailand made a new breakthrough by granting licenses to several cryptocurrency service providers in the White Elephant Country. This policy was taken to increase the development of cryptocurrency in Thailand. Reportedly, there are 13 cryptocurrency service providers that have been licensed by the government.
Reporting from News Bitcoin, the Thai government through a Royal Decree states that there are three types of cryptocurrency services that are licensed, namely digital asset exchange services, digital asset brokers, and digital asset dealers. However, the Thai government through the Royal Decree provides a different definition between cryptocurrencies or cryptocurrencies and digital tokens.
Cryptocurrency or crypto currency in the Royal Decree is defined as an entity created by certain parties with the aim of being a medium of exchange to obtain goods, services and other rights.
Meanwhile, a digital token is defined by the Royal Decree as an entity created by a certain party with the aim of determining the right of a person to participate in any investment project or business, or to obtain certain goods, services and rights under an agreement between the issuer and the holder.
Thus, cryptocurrency services in Thailand will later be given a license to be a service that deals only with cryptocurrencies without digital tokens or digital tokens only without cryptocurrencies or dealing with both.
To date, the Thai Securities and Exchange Commission (SEC) has approved six digital asset exchange services in Thailand. They are Bitkub, Bitcoin Co. Ltd., Satang Pro, Huobi Thailand, ERX, and Zipmex.
The six digital asset exchange services above are licensed to serve cryptocurrencies and digital tokens, except for ERX which is only approved to manage digital tokens. ERX itself is the newest digital asset exchange service licensed by the Thai government.
On the other hand, Bitcoin Co. Ltd. or BX, which has also been given a license, has actually stopped transactions since September 30, 2019. However, the SEC stated that BX was in the process of returning the license.
In the field of digital asset brokers, there are three companies licensed by the Thai government. They are Coins TH, Bitazza, and Kulap. Of the three brokers, only Coins TH has previously received a license from the Thai government and Kulap has not been operating until now.
Another area where licenses are granted is Initial Coin Offerings (ICO) portals. Royal Decree defines an ICO portal as a provider of electronic systems to facilitate the offering of newly issued digital tokens.
The task of the ICO portal itself is to conduct due diligence on the characteristics of the digital token to be offered and the qualifications of the issuer, and ensure the completeness and accuracy of the information contained in the registration statement, draft prospectus or other information that will be disclosed through the portal.
At least, there are four ICO portals that have been granted licenses by the Thai government, namely Longroot, T-box, SE Digital, and Bitherb. Of the four services, only Bitherb is not operational yet. Bitherb itself is a company formed as a joint venture between Bitpoint Japan and Asia Herb Association Bangkok Co. Ltd.
The Thai government regulates these digital asset services in the Thai Anti-Money Laundering Law. The Thai government itself said that all digital services that wish to operate in Thailand must be approved by the Minister of Finance on the recommendation of the SEC.
“Those who intend to operate a digital asset business must be approved by the Minister of Finance on the recommendation of the SEC,” said one representative of Thailand’s securities regulator.