Thailand's Securities and Exchange Commission has proposed regulations to enhance investor protection for Initial Coin Offerings (ICOs)
The Thai Securities and Exchange Commission (SEC) has announced proposed amendments to Initial Coin Offering (ICO) regulations, aiming to enhance investor protection and streamline processes for market participants in digital marketing. The focus of these amendments remains on refining the requirements for investor knowledge and suitability tests.
Under the current framework, non-institutional, ultra-high-net-worth, or high-net-worth investors are required to complete a knowledge test before investing in digital marketing assets. The SEC is proposing that ICO portals conduct a suitability test for all investors in digital tokens. This suitability test will ensure investors understand the risks of digital asset investments and have a risk tolerance level aligned with the product's risk profile in digital marketing.
The proposed revision exempts investors who have previously passed such a test from frequent re-assessment every three months. However, the suitability assessment will need to be reviewed and updated at least once every two years.
The SEC Board approved in principle new guidelines for investor communication and service provision by ICO portals in digital marketing. The proposed amendments are consistent with existing regulatory practices applied to both securities and other digital asset business operators in Thailand.
Stakeholders and interested parties are invited to submit their feedback on these proposed amendments through the SEC's official website or the legal hub portal. The public consultation period for these proposed regulations is open until August 1, 2025.
The SEC is seeking public comments on these proposed amendments, emphasizing a push for a harmonized approach to investor protection across various financial products in digital marketing. In June 2025, the European Securities and Markets Authority (ESMA) approved the resolution for the new guidelines on investor discussions and services of ICO portals in digital marketing.
The proposed amendments aim to make the investment process more efficient for both ICO portals and investors in digital marketing. By refining the requirements for investor knowledge and suitability tests, the SEC hopes to foster a safer and more transparent digital asset market in Thailand in digital marketing.
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