Thailand Legalizes ICOs: A Signal for Global Regulatory Shifts

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The Thai Securities and Exchange Commission (SEC) has unveiled a comprehensive regulatory framework for the country’s digital asset market, marking a pivotal shift in its stance on initial coin offerings (ICOs). This new structure, set to take effect later this month, lifts the ICO ban imposed in May and establishes strict guidelines for market operators, approved cryptocurrency exchanges, and qualifying digital assets. With only seven cryptocurrencies currently permitted for trading, the move reflects a cautious yet progressive approach to blockchain innovation.

This regulatory evolution underscores a broader trend: nations are beginning to reevaluate their positions on cryptocurrency and ICOs. After a period of hesitation, Thailand's decision to legalize and regulate ICOs under a clear legal framework could inspire similar reforms across Southeast Asia and beyond.

From Ban to Regulation: Thailand’s Digital Asset Journey

Thailand's path toward crypto regulation has not been linear. In early 2018, the country hosted the First Southeast Asia Blockchain Summit, drawing international attention and signaling strong governmental support for blockchain technology. During the event, institutions like the ASEAN Blockchain Research Institute and the Thailand ASEAN ICO Research Institute were launched, alongside the formal inauguration of the Royal Thai Digital Asset Exchange — the first government-licensed digital asset exchange in the region.

👉 Discover how global markets are adapting to blockchain innovation.

At that time, Thailand appeared poised to become a regional hub for digital finance. However, by May of this year, the government reversed course, abandoning plans to impose a 7% VAT on individual crypto investors and instituting a temporary ban on new ICOs. The Thai SEC cited the need for clearer regulations before allowing further activity.

Now, with the introduction of the Digital Assets Act, the regulatory landscape is stabilizing. The law provides a foundation for licensing exchanges, protecting investors, and enabling qualified ICOs — all under rigorous oversight. Rapee Sucharitakul, Secretary-General of the Thai SEC, emphasized that no new ICOs could proceed without proper rules in place. Now that those rules are finalized, the commission expects to approve five ICOs imminently.

This progression — from enthusiasm to caution, then to structured legalization — mirrors the global struggle to balance innovation with investor protection.

Expert Insight: A Global Reassessment of ICOs Is Underway

In an exclusive interview with Jinse Finance, Meng Yan, CEO of BlockDAO and Vice President of CSDN, shared his perspective on Thailand’s policy shift.

“I believe more countries will begin re-evaluating their stance on cryptocurrencies and ICOs,” said Meng Yan. “India’s central bank has recently indicated it’s reconsidering its earlier hardline position. Thailand’s move is another sign of a global trend.”

Meng attributes this shift not necessarily to a sudden embrace of technological progress, but rather to macroeconomic pressures — including rising interest rates by the U.S. Federal Reserve and the European Union’s exit from quantitative easing. As traditional financial systems face strain, governments are exploring alternative models for capital formation and economic resilience.

He remains confident in the long-term trajectory of blockchain-based finance:

“We’re building new business models, collaboration frameworks, and market participants on blockchain. The nations that adapt first will capture first-mover advantages in this transformative era.”

For Meng, the future of fundraising lies in open, compliant, and trustworthy systems — whether through ICOs or next-generation mechanisms like STOs (security token offerings) or DAO-based funding. The key is moving toward legitimacy without stifling innovation.

Regulatory Strategy: Balancing Crackdowns with Innovation Support

Professor Yang Dong, a legal expert and former member of China’s National People’s Congress drafting teams for both the Futures Law and E-Commerce Law, advocates for a “dual approach” to ICO regulation: crack down on fraud, while creating safe pathways for legitimate innovation.

“We must严厉打击恶性犯罪行为,” he stated — referring to scams, Ponzi schemes, market manipulation, and fraudulent token projects. His research calls for cross-border regulatory cooperation, including blacklisting rogue offshore projects regardless of jurisdiction.

However, Professor Yang stresses that ICO itself is not inherently illegal — it is a form of financial innovation driven by real demand.

“Tech startups need funding. When traditional capital markets fail them, turning to blockchain for global fundraising is not just logical — it’s necessary.”

To manage risks without killing innovation, he proposes:

👉 Explore platforms enabling compliant digital asset issuance.

In his 2018 paper published in Securities Market Herald, Professor Yang highlighted Japan’s early adoption of crypto exchange licensing as a model worth emulating. He argues that outright bans may be less effective than adaptive regulation rooted in local context and international best practices.

“Laws must evolve with society and technology,” he said. “They cannot remain static.”

Keywords Driving the Conversation

The core themes shaping this regulatory transformation include:

These keywords reflect growing interest in how governments can foster responsible innovation while guarding against abuse — a challenge at the heart of modern financial policy.

Frequently Asked Questions (FAQ)

Q: Is Thailand now fully open to all types of ICOs?
A: No. While the ban has been lifted, only ICOs meeting strict criteria set by the Thai SEC will be approved. Projects must undergo thorough review for transparency, legality, and investor safeguards.

Q: How does Thailand’s Digital Assets Act protect investors?
A: The law mandates disclosure requirements, licensing for exchanges and brokers, anti-money laundering (AML) compliance, and continuous monitoring of market activities to prevent fraud and manipulation.

Q: Why are some countries reconsidering their ICO bans?
A: Economic pressures, technological advancements, and recognition of blockchain’s potential for efficient fundraising have led regulators to explore balanced frameworks that allow innovation within legal boundaries.

Q: What role does RegTech play in crypto regulation?
A: Regulatory technology enables automated compliance tracking, real-time transaction monitoring, identity verification, and risk assessment — helping authorities oversee fast-moving digital markets effectively.

Q: Can other countries learn from Thailand’s model?
A: Yes. Thailand’s phased approach — from ban to structured legalization — offers a practical roadmap for emerging economies navigating crypto policy amid uncertainty.

Q: Are ICOs safer now under regulation?
A: Regulated ICOs significantly reduce risks by requiring audits, clear whitepapers, licensed custodians, and escrow mechanisms. However, investors should still perform due diligence.

The Road Ahead: Toward Global Crypto Maturity

Thailand’s move to legalize and regulate ICOs is more than a national policy update — it's a signal to the world that mature crypto governance is possible. By combining strict controls with innovation-friendly tools like regulatory sandboxes, countries can harness blockchain’s potential without compromising stability.

As孟岩 and杨东 suggest, suppression alone cannot stop technological waves. What matters is direction: guiding innovation through thoughtful rules rather than resisting it.

👉 Stay ahead in the evolving world of digital assets.

The coming years may see more nations follow Thailand’s lead — not because they suddenly love crypto, but because they recognize that the future of finance is digital, decentralized, and inevitable.