Thai Digital Asset Exchange (TDAX) is the first to postpone ICO’s from trading while waiting for a clearer regulatory framework from the Securities and Exchange Commission.
Just after a few days of a bank account being barred and the transaction being held by one of the leading banks of Thailand, such a major decision was made. According to sources, this decision was due to the non-compliance of the exchange with its business purpose as registered. Financial institutions received a warning which prohibited them from involving in any kind of crypto exchanges or transactions.
None of the customers or trading was affected, Exchange founder and CEO Poramin Insom also stated,
“Daily trading value remains normal, driven by demand from investors for digital currencies, and investors are able to conduct transactions with three other banks…”
Another move by the TDAX announced brakes on trading while awaiting ICO regulatory framework to be disclosed by the SEC expected by March 8th followed by a fintech bill.
Once these regulations are finalized, online crypto exchanges will be monitored and compulsorily be registered with the SEC. If startups choose to raise funds from foreign exchanges, the threat is real and the regulations need to be rushed. This will affect the stock market on a greater note. These regulations, on the other hand, will open up more crypto exchanges within the kingdom making it more crypto friendly like Japan, Singapore, and other countries.
According to coinmarketcap, TDAX which handles approximately $570k trade volume and BX on a larger note handles $6.5 million per day are the only two private exchange platforms in Thailand. SEC chair Jay Clayton notes,
“At present, not one single Initial Coin Offering (ICO) currently in progress or whose launch has been announced is registered with the SEC.”
Kasemchai Winai, a portfolio manager from Bangkok says,
“We are at a critical time in this country, our government has been very positive about cryptocurrencies and I think after a few regulatory actions, Thailand can be one of the biggest contributors in the cryptocurrency world”
Crypto markets have been slightly flat over the weekend. The sooner the regulatory framework is released by the SEC, the better it is for the crypto industry of Thailand to enable more exchanges and get trader friendly. The transactions or exchanges with respect to ICOs will be barred until then.
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