Thai exchange TDAX early this morning announced that it has postponed registration on its platform while also suspending trading as they await clear regulation framework from SEC. The platform has also had its account shut down due to lack of proper license by the Bangkok Bank.
SEC Regulations to be Announced Soon
The Thai Digital Asset Exchange stated that it would be postponing its cooperate registration while also suspending trades for two weeks as they await ICO regulations from the Securities Exchange Commision (SEC).
The platform made the announcement even though they have six ICOs currently in development. TDAX has also decided to postpone its trading until SEC releases its regulations on March 8, with the fintech bill following it.
It is expected that these regulations will be focused on cryptocurrency exchanges which must be registered with the commission. Also, ICOs are expected to be launched using a portal that originates from the country and must have at least 5 million baht in capital.
Bangkok Bank to Close Down TDAX Account
The exchange’s account will be closed down by the Bangkok Bank after the bank announced that it would cease handling crypto transactions for the platform. The bank added that the account will be shut down due to what it terms as an improper business license.
TDAX founder and chief executive Poramin Insom commented that the company has already been registered as a digital currency business with the Commerce Ministry’s Business Development Department after it received its operating license.
He stated that “The bank called and asked whether there was an operating licence for proof, but I answered that this business was not under legal jurisdiction [hence the absence of an operating licence], so the bank said it would terminate the company’s bank account [with Bangkok Bank], as this business had no licence,”
TDAX afterward requested that they be allowed to close the account themselves, adding that the bank has no mandate to force clients to open or close accounts with them.
Poramin added that TDAX still trades Bitcoin and other cryptos with other Thai banks (Kasikornbank (KBank), Siam Commercial Bank and Krungthai Bank), thus, their customers can continue to trade and conduct transactions.
Sources close to the commission state that SEC will likely cap individual investors at 300,000 baht, a move that will force serious investors to turn abroad for crypto and ICO investments.
One of the sources stated that “This amount for individual investors is very tiny. Hence, you will see many Thai startups registered in foreign countries such as Hong Kong and Singapore to raise funds outside of Thailand’s legal jurisdiction.”