Thailand's SEC Proposes Streamlined Investor Protection for ICOs

The Thai Securities and Exchange Commission (SEC) announced on July 18, 2025, that it is seeking public comments on proposed amendments to regulations governing Initial Coin Offering (ICO) portals. The key proposals focus on refining the requirements for investor knowledge and suitability tests, aiming to enhance investor protection while simultaneously streamlining processes for market participants.

Under the current framework, non-institutional, ultra-high-net-worth, or high-net-worth investors are required to complete a knowledge test before investing in digital assets. The proposed revision aims to reduce the burden of frequent testing by exempting investors who have previously passed such a test, removing the current requirement for re-assessment every three months. This change is intended to make the investment process more efficient for both ICO portals and investors.

In addition to the knowledge test adjustments, the SEC proposes that ICO portals be mandated to conduct a suitability test for all investors in digital tokens. This assessment will ensure that investors understand the inherent risks of digital asset investments and possess a risk tolerance level aligned with the product's risk profile. Crucially, this suitability assessment will need to be reviewed and updated at least once every two years, establishing a regular review cycle for investor profiles.

These proposed regulations are a result of a resolution passed by the SEC Board in June 2025, which approved in principle the new guidelines for investor communication and service provision by ICO portals. The SEC emphasized that these proposed requirements are consistent with existing regulatory practices applied to both securities and other digital asset business operators in Thailand, demonstrating a push for a harmonized approach to investor protection across various financial products.

The public consultation period for these proposed regulations is open until August 1, 2025. Stakeholders and interested parties are invited to submit their feedback through the SEC's official website or the legal hub portal .