Thailand Proposes ICO Rule Shake-Up
Thailand’s Securities and Exchange Commission (SEC) has launched public hearings to revise its rules on initial coin offerings (ICOs), aiming to ease compliance for active investors and bolster safeguards for retail participants. Under the proposed changes, investors who have previously passed the mandatory knowledge test would no longer need to repeat it every three months, a significant change from the existing regulation.
Currently, individuals using ICO portals must retake the exam quarterly before they’re allowed to invest. But the SEC’s new proposal suggests that a one-time test would suffice — unless the investor's profile or market risk exposure changes.
Additionally, the SEC wants to implement mandatory suitability assessments for all investors. These evaluations, conducted by the ICO portals themselves, must be revised at least every two years, bringing digital asset oversight more in line with traditional securities laws.
In its press statement, the Thai SEC explained:
Reducing Speculation, Boosting Credibility
The reforms aim to curb speculative investing and protect uninformed users from scams, particularly fraudulent ICOs and rug pulls. While institutional and high-net-worth investors are already exempt from certain requirements, the regulator is now focusing on striking a balance between accessibility and protection for retail investors.
Blockchain advocate and Blockon Ventures founder Jagdish Pandya praised Thailand’s progressive stance. He commented:
He also added that Thailand’s ICO portal surpasses international standards, outperforming frameworks in regions like the United Arab Emirates and Hong Kong.
Thailand vs. the Region
Thailand’s approach stands out in Southeast Asia, where other jurisdictions like Singapore, Malaysia, and the Philippines are still catching up with comprehensive crypto laws. By fine-tuning existing ICO regulations instead of overhauling them, Thailand is looking to create a safe yet competitive digital asset market.
The investor knowledge test exemption is expected to encourage sustained market participation, while suitability assessments aim to prevent overexposure and limit uninformed investment behavior — two common issues during ICO booms.
Broader Economic Policy Still Tied to US Trade Talks
While focusing on domestic crypto reforms, Thailand is also engaged in sensitive trade negotiations with the U.S. over import tariffs. According to economist Somjai Phagaphasvivat, Thailand’s limited free trade agreements (FTAs) might make it difficult to match Vietnam’s aggressive concessions to Washington.
Still, with Deputy PM Pichai Chunhavajira calling the topic “a tender subject,” the government appears cautious about removing tariffs too quickly, fearing it may hurt domestic industries. Somjai recommended alternatives like tariff quotas and flexible product standards to shield vulnerable sectors.
SEC Push Reflects Larger Push for Crypto Maturity
Thailand’s current SEC efforts show its intent to lead in crypto oversight, not just in Asia but globally. By reducing regulatory friction for experienced investors and tightening protections for newcomers, the country is signaling its ambition to become a crypto-forward economy — one that welcomes innovation without compromising safety.
