The Thailand Securities and Exchanges Commission (SEC) is on the verge of becoming arguably the first regulator globally to back a portal dedicated to listing ICOs that mainstream investors can trust.
As per a report by the Bangkok Post, on March 12, the Thai SEC board of directors has approved the country's first ICO portal that will:
ensure that the project is implementing Know-Your-Customer (KYC) rules
confirm the project’s smart contract source codes and
conduct other necessary due diligence.
The purpose of these procedures is to ensure that the ICO portal which is reportedly a foreign entity, will only list projects with workable solutions and achievable roadmaps.
Archari Suppiroj, director of the Fintech department at the Thai SEC, said the ICO portal is now pending approval from other relevant government agencies such as the Ministry of Commerce.
Additionally, she stated that the ICO portal operator who was chosen from a pool of eight applicants would likely list its first ICO in the coming months in line with Thailand's Digital Asset Decree.
Separating ICOs from STOs
Pinpointedly, Suppiroj further explained that the new ICO portal would not list security token offerings (STOs) — a new fundraising model where a company raises funds by tokenizing its securities and distributing it to investors in the same way as an ICO.
According to her, those wishing to operate such a model will have to apply for a license since securities transactions are regulated under the Thai Securities Act.
"In the future, the SEC will issue criteria that allow companies to apply tokenization to securities and other assets," Suppiroj said.
As Stmarket.co reported in the past, the Thai Parliament has already reviewed proposed amendments that will allow companies to tokenize their securities while talks of an ICO portal first emerged in November 2018.
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