In an endeavor to reduce the burden on the Initial Coin Offering portals (ICO) and investors, Thai authorities seek to relax the crypto knowledge assessment that retail investors undergo every 3 months.
According to the prevailing law, investors need to complete a crypto knowledge assessment every three months. However, with the mandate proposed by the Thai Securities and Exchange Commission (SEC), retail investors who have once completed the assessment would not need to appear for it again.
Once investors have completed the assessment, it ensures that they are fully aware of the risk involved in ICO, hence, they will not need to appear again.
In the announcement, the SEC said, “This proposal aims to reduce the burden on both ICO portals and investors by canceling the requirement for such assessment every three months,”.However, before implementing this, the SEC seeks the public’s opinion.
The proposed mandate targets two areas. It primarily targets not institutional investors or those not classified under the ultra-high-net-worth or high-net-worth individuals, to pass the assessment before investing, given that they have not passed in the passed.
Secondly, the proposal will ensure that the ICO portals conduct comprehensive suitability tests “to ensure that investors in digital tokens understand the investment risks and have a risk tolerance level appropriate and in alignment with the product risk,” according to the SEC.
