Thailand`s Securities and Exchange Commission (SEC), the country`s capital markets authority, has published a statement regarding ICOs (initial coin o
Thailand`s Securities and Exchange Commission (SEC), the country`s capital markets authority, has published a statement regarding ICOs (initial coin offerings).
“ICO has gained popularity among tech startups as a convenient and timely way to access funding. In the past few months, ICO has grown exponentially and has surpassed early stage venture capital funding. As a result, financial regulators, including the SEC Thailand, are concerned that in some cases ICO may be deliberately used as a tool for fraud or scam.”, a the SEC Thailand`s Viewpoint on ICO reads.
However, the commission “realizes the potential of ICO in answering startups` funding needs”. As the agency pointed out, in cases where an ICO offers securities, the issuer will need to comply with applicable regulatory requirments under the SEC Thailand`s purview.
While expressing concern, SEC Thailand claims to understand the environment in which technology start-ups operate.
“Therefore, to strike the balance between supporting digital innovation and protecting investors from potential ICO scams, the SEC Thailand is considering appropriate approaches on ICO and welcomes comments and suggestions from the private sector.”, as SEC Thailand wrote.
“The SEC Thailand would like to advise any investor interested in investing in an ICO to seek to understand the benefits and risks associated with the ICO. In addition to general risks faced by startups, investors are exposed to heightened risks of price volatility, inadequate liquidity, cyber security, as well as potential fraud and scam. Given ICO’s cross-border nature, legal protection and recourse for investors may be limited or not applicable in most cases.”, the regulator concluded its public press release published on September 14, 2017.