Thailand appears to have taken a significant step towards becoming a global center for cryptocurrency commerce. In doing so, the country has managed something few nations have been able to do–create a defined regulatory framework for cryptocurrencies.

In many countries, the debate rages on whether to classify cryptos as securities or not. In the United States, the Securities and Exchange Commission has said that most ICO tokens are securities. Cryptocurrency proponents like John McAfee continue to the vocal in their opposition to that characterization.

While regulations in the United States are anything but clear, Asian countries continue to assert their dominance in the market. As a relatively small country, Thailand isn’t going to make an immediate mark on the global stage, but there is no stopping them now becoming major players in the Asian theater.

Earlier in the year, Thai officials introduced a draft framework that laid the groundwork for a new national decree on cryptocurrencies. Based on this decree, the government wrote a brand-new law specifically for the virtual currency market, and the result was the birth of the Digital Asset Business Decree.

The new regulatory paradigm defined cryptocurrencies as a medium of exchange and tokens as rights to participate in a digital environment. Thailand’s financial regulator, also called the SEC designed the law to be a veritable middle ground that allows crypto commerce but with adequate checks and balances.

The integral part of any cryptocurrency law is the legal status of initial coin offerings (ICOs). For Thailand, ICOs were banned initially but the new laws reversed the ban. Instead, projects that comply with laid down ordinances can go ahead with their token sales.

At the heart of the Thai ICO regulation is the selection of seven legal cryptocurrencies. These seven are Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Stellar, and Ethereum Classic. All ICO projects in the country are to be denominated in these currencies. Also, they are the only trading pairs that cryptocurrency exchange platforms operating in Thailand can list. According to Archari Suppiroj, the Thai SEC fintech chief, the seven cryptocurrencies were selected based on their liquidity and ease of conversion to baht (the Thai fiat currency).

The Thai crypto regulatory framework provides a guideline for almost all aspects of the market. There are laws for exchange platforms, brokers, and dealers. ICO projects require virtually the same reporting standards as equity offerings, so that means business plans and audited financial statements.

The one thorn in the new Thai crypto regulatory paradigm is the issue of tax provisions. The law specifies a 15 percent withholding tax on profits from cryptocurrency trading. However, there are hardly any perfect laws, and the authorities might end up tweaking the tax portion a little bit. If there is one thing Thailand has gotten right, it’s skipping the tedious securities debate and getting down to the business of adequately regulating the market.

The post Thailand Stakes a Claim in the Global Cryptocurrency Market appeared first on UNHASHED.

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