Thailand opens doors for cryptocurrency
The SEC of Thailand has given the first four cryptocurrency exchanges green light to start trading. This way the doors for cryptocurrency are officially opened.
An important step for the Asian crypto market?
Thailand was restrained
Initially, digital assets such as bitcoin and other cryptocurrencies were far from being received with open arms. High taxes were proposed on trading and profits on this type of assets. That would certainly have had a major impact on the position of cryptocurrency in Thailand.
The government in Thailand later decided to delete the tax proposal in favor of better regulation. Since then, a number of cryptocurrency exchanges and blockchain startups have requested licenses from the Thai Securities & Exchange Commission. They have been waiting for an answer since August.
Thailand issues Four licenses
Four of those candidates can breathe a sigh of relief. An official statement from the SEC states that their applications have been approved. It is Bitcoin Co., Ltd (BX, bx.in.th), Bitkhun Online Co., Ltd. (BITKUB, bitkub.com), Satang Corporation Limited (Satang Pro, satang.pro), and Coins TH Company (Coins.co.th).
Two companies can return to the drawing board. Their applications did not meet the requirements regarding digital security and the KYC protocol. Both companies have to stop their operations, and have until January 14 to tell their users that they have to withdraw their money.
Is there any room for startups?
For Thailand this may have been a lucrative move. It has suddenly become an attractive region in Asia for crypto companies. In 2018, new legislation was adopted for cryptocurrency and ICOs. In June last year, the country legalized 7 cryptocurrencies, including bitcoin and ether.
It is likely that Thailand will see an influx of startups in the coming months. The country may also have become attractive for emigrants from nearby countries, such as India and China.
This decision can also have a positive effect on the market in Asia as a whole. In Asia, the number of countries where cryptocurrencies have become part of the economy is increasing. The experience shows that this can have a stimulating effect on surrounding economies.