The regulatory body overseeing securities in Thailand, the SEC, is seeking input from the public regarding potential modifications to the regulations surrounding cryptocurrency investment activities.
According to a public statement from the Thai SEC, investors engaging in initial coin offerings (ICOs) through officially licensed platforms may be required to demonstrate their knowledge through a recurring assessment every quarter (three months).
This stipulation primarily affects retail investors, with exemptions potentially granted to high-net-worth individuals.
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The purpose of this proposed knowledge assessment is to ascertain investor comprehension of the mechanics associated with ICOs and the inherent dangers involved, including but not limited to market volatility and potential technological faults.
However, the SEC acknowledges that repeated testing might not be the most effective approach. The revised proposal considers waiving subsequent tests for investors who have previously demonstrated sufficient knowledge by passing the assessment.
The regulatory body also plans to strengthen the accountability of ICO platforms regarding investor suitability. These platforms would be mandated to comprehensively evaluate each investor’s financial standing, risk appetite, and understanding of the digital assets being acquired.
This extensive evaluation will be required at least once every two years, replacing the current three-month re-evaluation period.
The SEC anticipates that these adjustments will reduce administrative burdens for both investors and ICO platforms. Furthermore, the proposed changes aim to align the regulatory framework for crypto assets with established practices in traditional investment markets, like stocks and bonds.
In related news, AUSTRAC recently unveiled a new strategy targeting crypto exchanges and rapid international money transfers to combat financial offenses. Want the details? Discover the key points here.
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