While requiring thorough comprehensive suitability, the Thai securities regulator is looking for public feedback on proposed new regulations that would make knowledge testing easier for cryptocurrency investors.
Investors who have already passed the proposed initial coin offering laws will be able to skip the recurrent knowledge test. This is according to the Thai Securities and Exchange Commission, which stated on Friday that public hearings are being held on the matter.
Revised ICO Regulations
As things stand, everyone looking to put money into initial coin offerings (ICOs) must first pass a knowledge test every three months. Two important aspects of investor protection are the focus of the proposed revisions.
The SEC has a few requirements for potential investors. First, unless they have done it previously, non-institutional investors (those not considered ultra-high-net-worth or high-net-worth people) are required to pass a knowledge exam.
Second, initial coin offering (ICO) platforms would have to verify that its users are suitable “to ensure that investors in digital tokens understand the investment risks and have a risk tolerance level appropriate and in alignment with the product risk.” In place of the present quarterly obligation, these evaluations must be evaluated and updated every two years.
The SEC said in its announcement:
“This proposal aims to reduce the burden on both ICO portals and investors by canceling the requirement for such assessment every three months.”
Moreover, the new rules are in line with regulatory standards. That affect operators of digital asset and securities businesses, the regulator said. Proposed expertise and suitability requirements, according to industry analysts, would prevent “amateur investors.” From making the same errors in investing in initial coin offerings (ICOs) as in the “old ICO scam era.”
The proposed framework would maintain the status quo, exempting professional investor classes from the knowledge testing requirements. The plan might alter the accessibility of initial coin offerings (ICOs) in Thailand. Stakeholders and investors have until August 1 to provide feedback.
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