Thailand is all set to legalize security token offerings utilizing blockchain technology with an ongoing change to the Securities and Exchange Act.

Thailand to Legalize Security Token Offerings

Thailand’s National Authoritative Get together has supposedly affirmed a change to the current Securities and Exchange Act on February eighth, as per the Bangkok Post.

The changed act is relied upon to become effective this year as indicated by Tipsuda Thavaramara, Deputy Secretary-General at the Securities and Exchange Commission.

The Director of the Corporate Communication Department at the Securities and Exchange Commission, Pariya Techamuanvivit, said that once this occurs, it will be legitimate for organizations to offer security tokens utilizing blockchain technology.

She likewise laid out that the Commission will almost certainly give legitimate clearness on regardless of whether certain securities can be issued as advanced tokens.

Besides, the rights and the commitments which are related with the advanced token, subject of the STO, will decide if it will be managed under the Securities and Exchange Act and the Royal Decree on Virtual Assets.

The declaration holds that if a financial instrument, for example, cryptocurrencies or digital assets, fits the meaning of security, at that point it will be managed under the act.

It’s important that last year Thailand set up tenets which put clear definitions for the expressions “cryptographic forms of money” and “computerized token”, thus finishing the cash versus security token discussion. Per the tenets, “digital currencies” are utilized as a mode of payment while trading products.

“Digital Assets” then again, are characterized as rights to partake in speculation.

Other Advancements

Moreover, the changed act will likewise enable organizations to acquire licenses to work as a repository of securities and digital tokens. This was earlier permitted just for the Thailand Securities Storehouse Co Ltd.

Thailand’s stock exchange (SET) is also thinking about to apply for a digital asset operating license with the Thai Financial Ministry. Whenever affirmed, SET may begin enabling its clients to exchange bitcoin and other cryptocurrencies.

In the local financial newspaper of 21st Day of February 2019, Nikkei Asian Review reports that the financial group of Japanese banking Giant Mizuho will launch its stablecoin for payment and remittance services on 1st Day of March 2019.

Mizuho Financial Group is a public banking company which holds the company has total assets of $1.8 trillion above.

This stablecoin will be launched with the partnership of 60 peer financial institutions. It is reported that these financial institutions together have 56 million user accounts. “J-coin” Is the new currency which is being launched or introduced in the industry of digital currency and will be directly linked to the existing bank accounts with digital wallets.  

The currency will be managed by a mobile App which will dubb J-Coin Pay, using QR codes at checkout to complete retail payments.

According to the reports, the currency will be a digital currency and a stablecoin fixed at a price of 1 yen per unit. The transfer of J-Coins wallets and bank accounts will be free of charge.

Japan is already served by payment innovators such as e-commerce giant Rakuten and chat app provider Line, which has itself launched its own cryptocurrency and in-house blockchain. J-Coin wallets user will not be required to go through the credit check. These services will also be provided to the people of below 18 years of age. J-Coin wallets will also serve a more flexible range of payments and remittance services than traditional bank accounts — with options for colleagues to split bills or for family members to transfer pocket money.

Even after the megabank’s broad perspective user base and 60-member alliance, its target user outreach still falls short of Line’s existing 79 million Japanese users. Line Pay, moreover, is already reportedly supported at 1.3 million stores.

Mizuho is thus reportedly further pursuing a partnership strategy with Alibaba’s Alipay to help J-Coin Pay gain traction with stores. It also plans to charge merchants lower transaction fees than credit card services, which typically range between 2 to 5 percent.

Enthusiastic towards cryptocurrency also the CEO of Tesla, Elon Musk, stated that the Day is not far when the paper currency will fade away and shall be replaced by the Bitcoin. Which clearly means Musk is in favor of the decentralized currency ( also known as cryptocurrency).

In one of the episodes of ‘On The Road To Full Autonomy With Elon Musk, which is hosted by Tasha Keeney, the CEO spoke and discussed the developments that Tesla shall undergo and also spoke about the cryptocurrency with regard the future of technology and finance.

When Elon Musk was asked regarding Jack Dorsey’s prediction, which was that the Internet shall be witnessing Bitcoin as its native currency soon, Elon Musk answered it and found it interesting.

He further said that the idea and also the structure of the Bitcoin is great and it seems like there is some advantage to Ethereum. Elon Musk is not sure whether it will be good for Tesla resources to get into cryptocurrency.

Elon Musk also said that Bitcoin and Ethereum scammers were so rampant on Twitter, he decided to join in and He said at one point that he wants to buy some Bitcoin. Then his account got suspended cause obviously there was some automatic rule, he then ended the conversation by saying that he was just joking.

A campaign was started by Twitter which deleted several bogus accounts for “coordinated manipulation,” and promotion of cryptocurrency scams, Elon Musk appreciated the website’s efforts.

Elon Musk added that the disadvantage of cryptocurrency is that the nature of production is energy intensive as regards to the mining process.

Keeney referenced to the terrible financial condition in Africa, where the restrictions on the currency stop the citizens from converting their currencies and forcing them to go through the US dollar. To which Musk replied that cryptocurrency is a far better way to transfer money or value rather than pieces of paper. Paper money is going away.

Even after Elon Musk’s positive statement on cryptocurrencies, his recognition for the structure and concept of Bitcoin and Ethereum and his confirmation that paper money will be replaced by the decentralized currency, the Tesla CEO made it clear that his company will not be selling Bitcoins.