The honorable co-founder and chief executive of Bitkub Capital Group Holdings, Jirayut Srupsrisopa, has urged the Securities and Exchange Commission (SEC) to put a barrier on the entry of influential foreign business operators into the industry in order to safeguard the flourishing of local digital asset entities. Major foreign businesses have access to the latest technological expertise, and a substantial amount of capital in their credit and so pose a threat to the domestic enterprises who have to face an unavoidable pressure of competition for survival.
Mr. Jirayut, while explaining his concerns over the matter, stated that there is an array of global crypto trading exchanges that are keen to launch themselves in Thailand to strengthen their position in the industry. He added that some of these trading platforms have applied for digital asset licenses from the concerned authorities. BiTherb of Japan and Huobi of China have acquired the license for setting up digital asset exchanges in Thailand, though, their operations are yet to begin.
According to the Commerce Ministry’s Foreign Business Act of 1999, the hold of foreign shareholders in Thailand-based firms, including the digital asset operations, should not be more than 50% of the total share. The decree includes digital currencies, tokens, and any other electronic data unit addressed as such by the SEC.
On May 14, 2018, the digital asset royal decree was put into effect. It listed four types of secondary business intermediaries, namely digital exchanges, brokerage companies, dealers and token portal service providers, or ICO portals. Where ICO portals need approval from the SEC, exchanges, brokers, and dealers require licenses from the Finance Ministry.
The CEO of Bitkub, Mr. Jirayut feared that any change in the royal decree would lubricate the entry process of foreign business operators. He added that a shut-stop on these big firms could benefit the country in the long run.
Bitkub has witnessed an increase in the number of investors and a surge in the trading volume, primarily after the closure of Bitcoin Co.