Thailand is home to more than 66 million people, and this country has fantastic potential when it comes to cryptocurrencies. Furthermore, the number of licensed cryptocurrency service providers in the country increased, and currently, there are 13 licensed cryptocurrency service providers.
The Royal Decree on the Digital Asset Businesses B.E. 2561 regulates the crypto sector in the country. According to the Royal Decree, there are several types of businesses. The first one is a digital asset exchange. Then, the second one is a digital asset broker and the last one is the digital asset dealer.
The Thai Securities and Exchange Commission (SEC) approved six digital asset exchanges. The list includes Bitkub, BX, Satang Pro, Huobi Thailand, Zipmex, as well as ERX. Interestingly, ERX is the newest approved digital asset exchange.
Cryptocurrency providers and Thai authorities
Notably, the Royal Decree distinguishes between cryptocurrencies and digital tokens. Based on the information provided by the Thai Securities and Exchange Commission, the purpose of cryptocurrencies is to serve as a medium of exchange for the acquisition of goods, services, or other rights.
In the case of a digital token, its purpose is to specify the right of a person to participate in an investment in any project or business or to acquire specific goods, services, or other rights based on the agreement between the issuer and the holder.
Interestingly, five out of the six licensed digital asset exchanges, have the authority to work with cryptocurrencies and digital tokens. However, Bitcoin Co. Ltd. halted trading on September 30, 2019, and this exchange is currently in the process of returning licenses.
The country is also regulating initial coin offerings (ICO) via licensed “ICO portals”. It is worth mentioning that the Royal Decree defines an ICO portal as a provider of an electronic system for facilitating the offering of newly issued digital tokens. Currently, there are four ICO portals: Longroot, T-box, Bitherb, and SE Digital.
As can be seen from the information stated above, cryptocurrency is still developing in the country. Consequently, thanks to joint efforts, it is possible to make local industry more attractive for users.