SEC Secretary-General Rapee Sucharitkul said that SEC has issued the notification relating to business operations of digital asset business operators under the royal decree on digital asset businesses, B.E. 2561 on expectation to come into force on 16 July 2018.

This notification will be enforced on those who will operate businesses as trading centers, brokerage firms and dealers for digital assets. Under the royal decree, they must obtain licenses to operate digital asset businesses from Ministry of Finance.

SEC has a duty to standardize business practices to ensure that operators are well-equipped in terms of management structure, work systems, particularly an efficient information technology (IT) systems with a penetration test and IT audit, and disclosure of key information to customers. Others include preparation of financial statements, methods to contact and service customers with identification of customers’ real identities or real beneficiaries, evaluation of customers’ investment suitability, update of customers’ information, use of consulting experts, no pressure on customers’ decision-making, and specific conditions for digital asset trading centers and dealers like a case of customers’ asset containment.

“Business operators play a vital role in the digital asset market. Therefore, SEC has issued the notification for interested parties to study it in detail. SEC is pleased to give advice for those who are interested to operate business from now in order to make them understand standards in each aspect. This will be preparation for submitting applications for licenses once Ministry of Finance’s announcement on digital asset licenses comes into force in the future. Despite of the fact that regulation has standardized digital asset business operations of business operators, digital asset investors must understand that investing in digital assets take high risks and fluctuations. Investors may suffer losses or find limited choices in swapping digital assets.

“In addition, the royal decree on digital asset businesses took effect since 14 May 2018. Offering or persuading to invest in digital assets are allowed after receiving SEC approval. So far, there has not yet been any who obtained an SEC approval to become ICO portals and for digital token sale. Therefore, those who make infringement will be regarded as breaking the laws with criminal and civil penalties. Persuasion to invest with falsely high return in a short period may be regarded as deception to investors. SEC would like to warn investors to take caution and inspect details before making an investment, otherwise, investors may lose a large amount of money. Those who have been persuaded or have suspicion, please contact SEC Help Center at 1207,” Rapee added.

Those who are interested and intend to apply for licenses in operating digital asset businesses, please download the related notifications at https://www.sec.or.th/mpublish/digitalasset/digitalasset.html

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