Thailand finally enacted a royal decree, under which cryptocurrencies and digital tokens are now officially treated as digital assets.
The law was put forward by the country’s Finance Ministry back in February, after the Bank of Thailand banned financial institutions from conducting any cryptocurrency transactions for the purpose of avoiding cases of fraud and money laundering.
From now on, Thailand’s Security Exchange Commission will be in charge of regulating all cryptocurrency transactions.
All sellers of digital tokens are required to register with the SEC within 90 days after the law takes effect. Unregistered token brokers or those who conduct token transactions via unregistered brokers may face a jail term of up to two years and fines of at least two times the token value, up to a maximum of 500,000 baht.
Entities and individuals involved in unauthorized business in digital assets may face jail terms of up to 5 years and a fine of up to 10,000 baht for each day of conducting the illegal business.
Individuals or entities that allow others to use their accounts to perform illegal transactions may face a jail term of up to one year and a fine of up to 100,000 baht.
Thanyalak Vacharachaisurapol, Assistant Managing Director of Kasikorn Research Center, said to The Straits Times that the newly adopted legislation will be a positive contribution to the quality of digital offerings, while this, in its turn, will create a positive ecosystem for domestic startups.