The Securities and Exchange Commission (SEC) of Thailand is set to start enforcing the newly launched law of digital asset. Following the enforcement, a total of five blockchain-based projects are expected to launch fundraising through the initial coin offerings (ICO).

Although the agency did not give details of the ICOs, SEC’s director of corporate finance in the equity department Thawatchai Kiatkwankul said that only five out of the 50 ICO projects that are seeking to raise money from the Thai capital will be approved.

The Securities and Exchange Commission recently launched a number of regulations which it says will become binding laws by end of the month. The regulator has put a brake on approval of new ICO as it awaits the laws to become effective. However, companies launched previously will still remain active and continue to make transaction as before. The law will not apply retroactively.

Thai SEC Deputy Secretary-General in charge of Policy and Corporate Finance Groups said that before companies float ICOs, they will be required to seek approval from the ICO portal where the ICO where it will be listed. Issuers will use ICO portals like finance advisers to ensure that rules regarding know-your-customer (KYC) are fully adhered to. After being granted approval by the ICO portal, the ICO will undergo a two months period of evaluation by the SEC. It is the SEC that will finally approve the ICO after ensuring that all the requirements have been satisfied.

Criteria for ICO issue

A company that seeks to issue token will be required to satisfy a number of conditions that have been put in place by SEC. For new companies or companies issuing ICOs for the first time will be required to have a capital of not less than 5 million baht. Retail investors will be able to invest a maximum of 300,000 baht in a single ICO project or not more than 70% of the total value of the tokens offered.