- Thailand’s SEC aims to modify its regulatory protocol for ICO investments.
- ICO investors in Thailand would undergo a modified knowledge test program.
- The new protocol aims to reduce the burden on ICO portals.
Thailand’s Securities and Exchange Commission (SEC) has started the process of modifying its regulatory rules for Initial Coin Offerings (ICOs), requesting public input on its proposed changes.
The proposal would alter the existing knowledge test program for investors looking to participate in crypto investments through ICOs.
A Less Frequent Knowledge Test Routine
According to its latest announcement on the issue, Thailand’s SEC is conducting public hearings over plans to allow investors to bypass repeated knowledge tests if they have previously passed such assessments. That would change the current rules that require investors to undergo knowledge tests every three months before investing through ICO portals.
Related: Thailand to Block Access to Unlicensed Crypto Platforms Starting June 28
The proposed rule change specifically targets retail investors who are not classified as high-net-worth individuals. Those who have already passed the test would not have to repeat the process for subsequent investments.
A new suitability test for ICO portals
Thailand’s SEC also intends to mandate ICO portals to conduct comprehensive suitability tests. The aim is to ensure that individuals investing in digital tokens understand the risks involved with the products and can tolerate them. Unlike the current routine that demands a quarterly review, the Thai SEC intends to implement a two-year review period for the knowledge test exercise.
Related: KuCoin Launches Fully Regulated Digital Asset Exchange in Thailand Under SEC License
According to Thailand’s SEC announcement, the new structure will reduce the burden on ICO portals and investors by introducing a less frequent testing regime. The regulator further stated that the new requirements align with regulatory practices applicable to both securities and digital asset business operators.
It is worth noting that Thailand’s regulators have actively pursued processes that promote investor protection, considering the growing participation in crypto activities within its borders. The regulator’s activities in the crypto industry date back to the early days of the technology, ahead of its South East Asian counterparts, including Singapore, Malaysia, the Philippines, and Vietnam.
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