Thailand has reportedly overhauled its net capital rules helping securities firms launch cryptocurrency exchanges. The country now has 15 licensed crypto service providers.
New Thai Rules and Crypto Exchanges
The Thai Securities and Exchange Commission (SEC) has revised its net capital (NC) rules that help securities companies provide crypto services, the Bangkok Post reported Wednesday.
“The revised NC rules are expected to help free up liquidity for securities firms that plan to do new business such as open digital or cryptocurrency exchanges,” the publication said, adding that some securities firms have consulted the SEC to start a cryptocurrency exchange.
Securities companies operating crypto companies are allowed to calculate the net capital funds using the value of these cryptocurrencies. “The maximum amount that can be calculated for digital assets for a company’s NC is 50% of its asset value,” the publication said. The new rules also count crypto assets as capital funds.
For securities firms operating crypto businesses and storing crypto assets for their clients, the rules require that they “store more than 1% of the capital of the cold wallet (offline system) and 5% of the client’s assets on another system ( hot wallet or online system). “For crypto companies that do not provide a cryptocustody service,” the NC requires equity to exceed 500,000 baht. [$16,469]. “
15 approved crypto companies
The Thai Royal Decree on the Digital Asset Businesses BE 2561 regulates the cryptocurrency sector in Thailand. It categorizes crypto businesses into three types: ‘digital asset exchange’, ‘digital asset broker’ and ‘digital asset dealer’. There is also a separate category for ICO (Initial Coin Offering) portals.
According to the Thai SEC website, a total of 15 cryptocurrency service providers are licensed to operate legally in the country. Some companies have received more than one license.
Eight companies are licensed to operate digital asset exchanges: Bitkub, BX, Satang Pro, Huobi, ERX, Zipmex, Upbit, and Z.com Ex. Five companies are licensed to act as digital asset brokers: Coins TH, Bitazza, Kulap, Upbit and Z.com Ex. Four companies have been approved to operate ICO portals: Longroot, T-box, SE Digital and Bitherb.
What do you think of the crypto regulations in Thailand? Let us know in the comments below.
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