Thailand

Thai political party looking at PM race promises $300 in crypto upon victory: Report

The country’s next general election will be held on May 14, at which time all 500 seats in Thailand’s House of Representatives will be up for grabs.

The Pheu Thai Party, a political party in opposition to the current prime minister’s in Thailand, has reportedly proposed giving nearly every citizen of the country roughly $300 in digital currency should it win the next election.

According to an April 7 report from the Bangkok Post, the Pheu Thai Party announced at an April 5 campaign event that it planned to give all Thai residents 16 years and older a stipend of 10,000 Thai baht — roughly $292 at the time of publication. One of the party’s candidates for prime minister, Srettha Thavisin, reportedly described the initiative as a stimulus project aimed at helping the local economy using blockchain technology.

The Pheu Thai Party vows to give 10,000 baht to all Thais aged 16 years and over via digital wallets on Jan 1, 2024 if it forms the next government. https://t.co/B6hntAL7jz pic.twitter.com/Zz82fw6FDm

— Bangkok Post (@BangkokPostNews) April 7, 2023

Thailand’s next general election will be held on May 14, at which time all 500 seats in the country’s House of Representatives will be up for grabs. Current Prime Minister Prayut Chan-o-cha, a member of the United Thai Nation Party, is eligible to hold his position until 2025 if selected, following a decision from Thailand’s Constitutional Court regarding his term limit.

Though crypto exchanges and trading are generally permissible in Thailand, the country’s Securities and Exchange Commission has been considering a ban on staking and lending services and established stricter rules for crypto custody providers. The country’s central bank also warned crypto investors in 2021 about stablecoins pegged to the baht.

With Thailand’s population at more than 70 million, roughly 50 million–60 million of whom are older than 16, the crypto project could cost the government anywhere from $14 billion to $18 billion.

Thavisin’s plan to distribute funds equally to residents echoes that of United States presidential candidate Andrew Yang in the 2020 elections. Yang proposed that all eligible people in the U.S. receive $1,000 every month as part of a universal basic income initiative.

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Thai SEC wants to lift restrictions on initial coin offerings

The latest proposal by the SEC of Thailand follows a series of regulatory changes targeting the digital asset market in the country.

Thailand’s Securities and Exchange Commission is preparing to soften retail investment restrictions related to initial coin offerings (ICO) to boost digital investments.

The Thai securities regulator is willing to lift the limit of 300,000 baht ($8,800) for asset-backed ICOs per person, planning to allow bigger investments in real estate and infrastructure-backed ICOs, the SEC officially announced on March 30.

The new measures aim to help Thailand boost local technological development due to growth in the capital market and the digital economy, the SEC said, adding:

“The revision of the regulation is aimed at enhancing effective monitoring of digital asset operations and reducing risks that might affect investors, digital asset operators and the market.”

The SEC opened a public hearing for the plan to remove the investment limit, noting that the new measures would increase investors’ risk exposure. The public consultation is scheduled to run until April 27.

The regulator plans to require digital asset operators to apply for permission from the SEC to expand to other businesses. Digital asset operators may also incur additional costs for compliance with new ICO regulations, the SEC noted.

The latest proposal by the SEC of Thailand follows a number of other regulatory amendments targeting the digital asset market in the country.

In early March, the SEC launched another public consultation regarding its draft regulation that would ban crypto firms from offering staking and lending transactions. Previously, the regulator also introduced new crypto custody services, potentially requiring virtual asset service providers to establish a digital wallet management system to guarantee the safety of funds.

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Thailand SEC wants public feedback on crypto lending, staking ban

Thailand’s securities regulator believes that crypto firms should not be allowed to deploy users’ deposits and provide lending services.

Thailand’s Securities and Exchange Commission (SEC) is preparing to hold a new public hearing on a potential ban on staking and lending services in the country.

Thailand’s SEC officially announced on March 8 that the authority is seeking public comments on a draft regulation prohibiting virtual asset service providers (VASPs) from providing or getting involved in any type of crypto staking and lending transactions.

According to the SEC’s policy, VASPs should not be allowed to deploy users’ deposits and provide lending services to prevent possible damage to investors in the case of services’ termination. Additionally, the draft regulation is expected further to clarify the scope of supervision of digital asset businesses because they are currently not fully supervised, the SEC stated, adding:

“The proposed regulation aims to provide greater protection to investors, reduce associated risks, and prevent a misunderstanding that deposit taking and lending services are under the same supervision as regulated digital asset businesses.”

In the announcement, the securities regulator mentioned that the SEC conducted a public hearing on the principle of the proposed regulation in September and October 2022. The draft regulation would essentially prohibit VASPs from accepting user deposits for lending, staking and any further deployment of such assets, offering interest payouts on crypto holdings and advertising such services.

The authority has invited stakeholders and interested parties to submit their feedback and suggestions via the SEC’s website or email by April 7, 2023.

The news comes amid the SEC of Thailand beefing up the country’s cryptocurrency rules in response to the ongoing crisis in the crypto lending industry.

Many major industry lenders — including Voyager Digital, Celsius Network, Genesis Global, Babel Finance and Hodlnaut — have encountered serious liquidity issues amid the ongoing crypto bear market, pushing some firms to restructure or liquidate their business. Gemini, a major crypto exchange founded by Tyler and Cameron Winklevoss, is facing a lawsuit from the United States’ SEC for alleged violations in its “Earn” program, designed to offer investors up to 8.05% in annual gains.

Thailand to offer tax breaks for investment token issuers

The government of Thailand expects that investment token offerings could generate more than $3.7 billion in the next two years.

The government of Thailand is moving to benefit from the digital asset industry growth by allowing tax-free issuance of digital tokens for investment.

Thailand’s cabinet has agreed to waive corporate income tax and value-added tax (VAT) for companies that issue investment tokens, Reuters reported.

Announcing the news on March 7, deputy government spokesman Rachada Dhnadirek said that companies will be able to access alternative ways of raising capital through investment tokens in addition to conventional methods like debentures.

Dhnadirek added that the government expects investment token offerings to generate 128 billion Thai baht ($3.7 billion) over the next two years. The state estimated potential losses of tax revenues at 35 billion baht ($1 million).

Thailand has taken a lot of steps to clarify local crypto-related taxation rules, with authorities suggesting the adoption of a 15% capital gains tax for investors in early 2022. The government subsequently scrapped the plans, exempting crypto traders from the 7% VAT on authorized exchanges a few months later.

Local regulators were also working to implement wider crypto regulations last year, with Thailand’s Securities and Exchange Commission banning the use of cryptocurrencies for payments in March 2022.

The news comes amid the Thai SEC continuing to work on stricter crypto regulations to protect investors. In January 2023, the financial regulator introduced new rules for crypto custody services, requiring all crypto custodians to have a contingency plan in case of unforeseen events.

Zipmex says it may resume 100% of Z wallet withdrawals subject to conditions

Creditors have until February 21 to vote on a new scheme proposed by the company that would let customers get all of their frozen deposits back.

Troubled Thai cryptocurrency exchange Zipmex says all of its customers will get their deposits back if eligible creditors approve a scheme of arrangement.

Zipmex announced on Feb. 15 that creditors have until Feb. 21 to vote on the scheme, which is being managed by KordaMentha. They “will receive 100% of their digital assets in the Z Wallet” if the scheme is approved and the cryptocurrency closes its pending investment deal.

Last July, Zipmex filed for debt relief in Singapore after its counter-party, crypto lending firm Babel Finance, halted withdrawals, citing “unusual liquidity pressures.” The exchange was also impacted by the bankruptcy of crypto lending firm Celsius. Together, the two counterparties owe Zipmex $48 million and $5 million, respectively.

Zipmex subsequently paused withdrawals on its platform after the revelations last July. However, withdrawals were resumed within two days for its fiat currency and trading funds service Trade Wallet. That said, the firm’s Z Wallet, used for Zipmex services and receipt of earnings and bonuses, remains in the debt moratorium state with the gradual resumption of withdrawals.

Cointelegraph reported on Dec. 2 that Thai Venture Capital V Ventures will acquire Zipmex for $100 million in cash and crypto. According to court documents, Zipmex plans to use cryptocurrency assets received from the transaction to unlock frozen customer accounts on the exchange by April. Subsequent to thisdevelopment, on Jan. 11, the Securities and Exchange Commission of Thailand began a new probe of Zipmex, alleging a breach of local rules. The regulatory agency has also warned investors to carefully review documents issued by the company before making a deal.

SEC of Thailand issues crypto custody provider rules

The Thai securities regulator now requires crypto custodians to have a contingency plan in case of unforeseen events.

The Securities and Exchange Commission (SEC) of Thailand is working to better protect cryptocurrency investors by introducing new rules for crypto custody services.

On Jan. 17, the Thai SEC issued regulations requiring virtual asset service providers (VASP) to establish a digital wallet management system to guarantee efficient custody. The new rules target crypto custodians or VASPs that provide crypto storage services.

The regulations include three major requirements, including the provision of policy and guidelines for overseeing the risk management of digital wallets and private keys. The rules require VASPs to communicate with regulators regarding such policies and provide action plans to ensure compliance.

Additionally, the SEC requested crypto custodians provide policies and procedures for designing, developing and managing digital wallets and keys. The authority will also require crypto custodians to establish a contingency plan in case of unforeseen events that may affect the wallet management system.

“This includes laying out and testing action procedures, designating responsible persons and reporting the event,” the SEC stated, adding:

“An audit of system security is also required as well as digital forensic investigation in case of any event affecting the security of systems related to digital asset custody, which could cause significant impacts on clients’ assets.”

According to the announcement, the new regulations have taken effect starting from Jan. 16, 2023. Crypto custodians are required to fully comply within six months from the effective date.

The latest crypto regulations by Thailand’s SEC align with the authority’s plans to adopt more strict crypto regulations in the aftermath of industry failures like the FTX collapse. In early January, the authority reportedly started a new investigation against a local crypto exchange Zipmex, alleging that the firm has been providing digital asset fund management services without permission.

Bank of Thailand to allow first virtual banks by 2025

By allowing virtual banks, Thailand seeks to boost competition and economic growth.

Bank of Thailand has disclosed plans to allow virtual banks to operate in the country for the first time. Financial firms will be able to provide services by 2025, a Bloomberg report shows.

The “Consultation Paper on Virtual Bank Licensing Framework” published by the central bank says that applications will be available later in 2023 allowing virtual banks to act as financial services providers. The move focuses on increasing competition and boosting Thailand’s economic growth.

The Bank of Thailand will issue three different licenses for interested companies by 2024. There are at least 10 parties interested in granting permissions, the report states.

Regulations and supervision for virtual banks will be the same as those for traditional commercial banks under the licensing framework. Moreover, qualified applicants will need to meet certain requirements. The central bank also noted:

“Virtual banks should not initiate a race to the bottom through irresponsible lending, give preferential treatment to related parties, nor abuse dominant market position which will pose risks to financial stability, depositors, and consumers as a whole.”

According to the central bank, virtual banks will be under a “restricted phase” during their first years of operation, which includes close monitoring to prevent financial systemic risks. Thailand’s Securities and Exchange Commission recently announced plans to tighten rules for crypto, aiming to expand investor protection. A strict set of guidelines for crypto ads is also being developed by the authority.

Thailand recently entered into a technology cooperation agreement with Hungary to support the adoption of blockchain technology, amid a fast growth of demand for mobile payments, e-commerce, and cryptocurrencies in the country, Cointelegraph reported.

The country has seen a number of crypto-related developments in 2022, including plans to pilot a central bank digital currency for roughly 10,000 users. Thailand is ranked eighth on the Global Crypto Adoption Index by analytics company Chainalysis.

Crypto exchange Zipmex probed by Thai SEC amid buyout

The cryptocurrency exchange is the subject of a probe by local monetary authorities in Thailand for a potential breach of local rules for digital asset service providers.

The cryptocurrency exchange Zipmex is the focus of a new probe by the Securities and Exchange Commission (SEC) of Thailand for a breach of local rules.

A Bloomberg report revealed that local authorities are looking into activities that they believe may violate business rules for digital asset service providers. This includes its offerings of certain digital asset products.

According to the Thai SEC, Zipmex has until Jan. 12 to clarify whether it has been functioning as a “digital asset fund manager without permission” in Thailand. If true, the firm would have needed to obtain a permit before conducting business in the country.

Zipmex is currently in the process of being acquired by V Ventures, a subsidiary of Thoresen Thai Agencies PCL, for around $100 million. The exchange allegedly plans to unfreeze customer accounts using funds from the acquisition by April 2023.

Cointelegraph reached out to Zipmex for clarification on the issue.

The situation between Zipmex and the Thai SEC has been underway since late last year. On Sep. 7 the agency filed a police report on Zipmex, which alleged ‘incomplete’ information given by the cryptocurrency exchange in its compliance procedure materials.

This all comes after Zipmex publicly faced financial turmoil back in July 2022, which included halting withdrawal and freezing accounts. The strain was due to a prolonged bear market which shuttered a number of businesses in the industry, as well as mass layoffs.

Zipmex had been in discussions with the Thai SEC in August for a potential recovery plan.

The Thai regulator has since announced plans to tighten rules for crypto with investor protection as its main focus. It also intends to create strict guidelines for crypto ads, along with a country-wide ban of crypto lending.

Thai SEC to tighten up rules for crypto, focus on investor protection

Thailand’s chief regulator highlights the importance of tighter control over cryptocurrency-related advertisements.

Thailand joins the growing list of countries that are seeking to revise their crypto regulation in the aftermath of the FTX collapse. And, as most of these countries do, it intends to tighten the guidelines for the industry and focus on investor protection.

According to the report from the Bangkok Post published on Dec. 13, the Thai Securities and Exchange Commission (SEC) is preparing more stringent regulations on digital assets “to mirror the global market.” To justify such a decision, the SEC representatives reportedly nodded on the failures of FTX, Three Arrows Capital, the TerraUSD, Celsius Network and the local exchange, Zipmex.

The regulators also raised their concern with the recent trends in crypto advertising, notably the use of “finfluencers” to deliver the message, which could have misled the audience into investment risks. They deemed the digital asset industry to be “vulnerable” and in need of oversight.

The SEC highlighted investor protection, control over crypto advertising, prevention of conflicts of interest and cybersecurity as major areas to focus its efforts on. It has set up a working committee, combined with both officials and private stakeholders, to assess and prepare the relevant amendments to existing regulations.

Interestingly, it’s not the first time the Thai SEC acted on crypto advertising standards. It has already obliged the market players to have clear investment warnings to consumers back in September.

The same month the SEC opened a public hearing on its initiative to prohibit crypto platforms from providing or supporting digital asset depository services. The possible ban of any staking and lending services is supposed to protect traders and the general public.

In Thailand, the wave of crypto businesses’ bankruptcies stroke one of the largest local platforms, Zipmex. In July, the company suspended withdrawals , citing a “combination of circumstances beyond [its] control.” The SEC accused Zipmex and its co-founder Akalarp Yimwilai of non-compliance with local laws and referred the matter to the police.

Thai VC fund acquires troubled exchange Zipmex for $100M: Report

Zipmex reportedly plans to use crypto assets received from the acquisition to unlock frozen customer accounts on the platform by April 2023.

After weeks of negotiations on a potential buyout of Zipmex, venture capital fund V Ventures has reportedly reached a deal to acquire the embattled cryptocurrency exchange.

V Ventures, a subsidiary of Thoresen Thai Agencies (TTA) public company, is looking to purchase a 90% stake in the Zipmex crypto exchange, Bloomberg reported on Dec. 2.

The VC fund is about to acquire Zipmex for about $100 million in digital assets and cash, anonymous sources familiar with the matter claimed. Citing a court hearing on Friday in Singapore, the report says that Zipmex was offered $30 million in cash and the rest in crypto.

According to the court hearing, Zipmex is planning to use cryptocurrency assets received from the transaction to unlock frozen customer accounts on the exchange by April 2023.

The acquisition report comes weeks after local media reported that V Ventures and Zipmex were on track to sign a majority buyout agreement.

As previously reported, Zipmex abruptly halted withdrawals on its platform in July 2022, citing a “combination of circumstances” beyond its control. The exchange, which has operations in Thailand, Singapore, Indonesia and Australia, subsequently started a restructuring process after getting three months of creditor protection from Singapore’s High Court.

Zipmex has also filed applications to extend the moratorium until April 2023 to support the restructuring efforts, which is pending consideration by the Singapore court.

Despite facing major issues, Zipmex has apparently continued offering some of its services after partially resuming withdrawals. According to Zipmex’s website, the exchange has been altering some of its withdrawal fees as well as listings over the past two months.

Zipmex and TTA did not immediately respond to Cointelegraph’s request for comment.

The news comes shortly after Thailand’s Securities and Exchange Commission (SEC) accused crypto exchange Zipmex and its co-founder Akalarp Yimwilai of violating local laws. The authority specifically argued that Zipmex had not provided information on digital wallets and crypto transactions in compliance with the country’s Digital Assets Act.