The Stock Exchange of Thailand is waiting for greater clarity on initial coin offering (ICO) regulations, but the SET admits that such digital crowdfunding could be considered as a security if it falls into an exchangeable criteria.
"If the [digital] token can be exchanged for something else in addition to assets or goods within a company, or there is a return generated from such tokens, then this would be classified as a security," said SET senior executive vice-president Santi Kiranand. "The Securities and Exchange Commission (SEC) and the SET will monitor the situation."
There is still no clarity on the sale of ICOs to interested investors, as the SEC is still conducting a public hearing on the ICO regulatory framework to prevent obstruction to productive innovation and offer another investment option, Mr Santi said.
Jaymart subsidiary J Ventures recently made headlines with its plan to become the country's first SET-listed company to sell its own digital currency once it releases "JFin" through an ICO in March.
The company hopes to acquire 660 million baht in the first phase of the 100-million-coin ICO, with a price of US$0.20 (6.40 baht) per coin. The raised funds will be used to develop a decentralised digital lending platform integrated with blockchain technology.
ICO transactions are similar to crowdfunding, whereby an issuer presents a business model to investors, but the difference is that the raised funds are in the form of digital currencies using blockchain technology and the deals are enforced using smart contracts.
Adisak Sukhumvitaya, chief executive of Jaymart, said the company has already informed and consulted with both the SET and the SEC regarding the ICO plan.
He said J Ventures has created 300 million digital tokens, with 100 million JFin coins to be offered in the first phase.
