Half a dozen Thai ICOs are currently unable to move forward with their token sales as the Thai Digital Asset Exchange (TDAX) has put a stop to all registrations and trading pending further instructions from regulators.
“We are waiting for the ICO regulations from the SEC,” said exchange founder and CEO Poramin Insom. The suspension will last for two weeks with the exchange expecting the new regulatory framework to become available on March 8th.
Legal Limbo
Among the ICOs in the queue is “blockchain kiosk and global tourism platform” Tuk TuK Pass, which aims to connect some of Thailand’s thirty million annual tourists with family businesses.
JFin coin, Thailand’s first ICO, will not be affected as it “ … was fully subscribed to on Feb 16”. Its first trading day remains April 2nd.
This is the second time in a week that the legal limbo around cryptocurrencies has caused TDAX problems. Bangkok Bank have just closed the TDAX’s account as it did not have an operating license. For Poramin, there is no license because ” … this business does not fall under any legal jurisdiction.”
According to the Bangkok Post, regulatory oversight for ICOs has been passed from the Finance Ministry to the SEC. Among the expected changes are an increased focus on exchange behaviour and limits to how much individuals can put into an ICO.
To protect Thai investors, it is expected that the maximum investment amount in an ICO will be 300,000 baht, around $9,500, leading to speculation in some quarters that may Thai blockchain startups will decide to incorporate their operations abroad as a result.
