"Techsauce Global Summit 2018" by Techsauce, Moderator for "Taming the Tiger: Do Regulators Need Special Rules for Digital Assets?" (23 Jun 2018)

1. PanelTopic: Tamingthe Tiger- Do Regulators NeedSpecialRules forDigitalAssets?
Opening Remarks
Opening Remarks
Good afternoonand welcome to our panel,“Taming the Tiger: Do RegulatorsNeedSpecial rulesfor
Digital Assets?”
Earlier thisyear, world leadersmetin at World Economic Forum to discuss the issuessurrounding
cryptocurrency.
The head of the IMF, Christine Lagarde, had expressedconcernsregarding the anonymous and opaque
nature of cryptocurrencies,warning that theycould become instrumentsinmoney launderingand
terrorism financing.
Likewise,US Secretary of the Treasury Department,Steve Mnuchin, remarked that the illicituse of
cryptocurrencies remainsa major concern for Americanregulators. 1
On the home front,the Thai crypto-landscape has also experiencedmomentouschanges. Followingthe
enactment of the Emergency Decree on the Digital Assetand the Emergency Decree on the Amendment
of the Revenue Code (No.19) earlierthis year,ICO portals,digital asset businesses,aswell as coin and
tokenholders are now subjectto new compliance obligationsand dutiesto report income earnedfrom
digital assets to the Revenue Department.2
Certainly,these eventsmake this year particularly timelytodiscuss the importance of regulating
cryptocurrency.
Today, we will hearabout regulatoryissuessurrounding digital assetsfrom three differentperspectives.
Hear with us are:
(1) K. Archari Suppiroj,the incumbentDirector of FinTech Department at the Securitiesand Exchange
Commission;
(2) K. Jirayut Srupsrisopa,Former Co-Founderand CEO at coins.co.th; and
(3) K. Nopporn Chareonkitraj,a partner of the tax practice group at Baker & McKenzie Thailand.
Today’s panel will be in a discussionformat. I wouldlike to invite our paneliststo feel free toprovide
theiropinionsand to debate withother panelists.
1
https://www.coindesk.com/may-lagarde-mnuching-davos-bitcoin-roundup/
2 https://www.bakermckenzie.com/-/media/files/insight/publications/2018/06/clientalertdigitalassets1162018.pdf?la=en
S27: Techsauce Moderator Notes 2018

2. QUESTIONS
Questions
All
panelists
(open-
ended
question)
From your respective professional experiences,inwhatways do you foresee cryptocurrency
and ICOs changing the banking and financial services?
In your respective profession,howdoesthe Thai experience differfromthat of other
jurisdictionswhenitcomes to digital assets?
Archari &
Nopporn
In additionto the recent regulationson ICOs what other legal and regulatory issueswould
have to be addressed?
Are you aware of any jurisdictionsthat have successfullyimplementedlawsbalancing
investorprotection with the ease of startup financing?
Archari
&
Jirayut
Recently,the SEC has passed newlaw regulatingthe ICO process and digital asset businesses,
which resembles securitiestrading,withongoingand periodicreporting obligations,among
other administrative duties:
From your experience,doyouthinkthat cryptocurrency exchangesand ICO
platformsneed more accountabilityor wouldmore regulations nullifythe
financial-democratizationbenefitsof coinsand tokens by makingit more
burdensome for startups to obtainfinancingthrough thisalternative means?
Jirayut From your experience,whatwouldbe some entrybarrier to newdigital asset businesses?
Do you believe thatthe new regulationswill onlyfavourlarge portals and exchangesat the
expense of startups?
Archari
&
Jirayut
In lightof recent news concerning the allegationand the findingof market price
manipulationsamong some major cryptocurrencies,what would be your advice for new
retail investorswho are interestedininvestingincrypto-assets?
Do you thinkcoin exchangeshave a responsibilitytohelppreventmarket manipulation?If so,
in what ways might exchangesassistregulators?
Jirayut &
Nopporn
With regards to the issue of income reporting,due to the encryptedand trans-jurisdictional
nature of digital assets,do coin exchangeshave a role in helpingthe Revenue Departmentto
collecttaxes from the proceedsderivingfrom the dispositionof digital assets?
Would you be able to provide practices of how revenue authoritiesinother jurisdictionsare
able to achieve thisgoal?
All
Panelists
In lightof recent newsconcerning the findingof market manipulation among some major
cryptocurrencies,what wouldbe your advice for new retail investorswho are interestedin
investingincrypto-assets?3
We would like to hear differentperspectives as follow:
(1) Legal perspective (Nopporn)
3 https://www.cnbc.com/video/2018/06/13/explosive-new-report-reveals-bitcoin-manipulation.html
S27: Techsauce Moderator Notes 2018

3. (2) Coin exchange’sperspective (Jirayut);and
(3) Regulatory perspective (Archari)
Archari &
Jirayut
There have been speculationsinthe IMF’s Global Financial StabilityReportthat in the future,
central banks may be calledupon to ensure primary coin-dealersandissuerbanks with
liquiditywhenneeded,aswell asevenprovidingdigital forms of e-money.
As bailoutsfall withinthe purviewof the BOT, do you think that goingon forward,the SEC
wouldremain the appropriate body to regulate digital assets?4
All
Panelists
As exchangesand ICO offerors operate in multiple jurisdictions,inwhatways do you see the
needto synchronize the key concepts involvingdigital assetsinThailand to be intune with
those of other jurisdictions?
With regards to your respective professions,what do you thinkare some issues that could
arise from the discrepancies betweendifferentjurisdictionswithregardsto keydefinitions
and classificationsconcerningcryptocurrencies and tokens?
Jirayut &
Archari
As many startups do fail,and an ICO whitepapersdoesnot constitute a prospectus per se,
shouldregulators in Thailandrequire more accountabilityfrom both token-issuersand
exchange platforms or shouldThai regulatorsallowinvestorsto exercise theirown
investmentprudence and discretions?
Nopporn Could youplease share with the audience how the recent Amendmentto the Revenue Code
will operate withregards to the withholdingtax obligationsimposedoncryptocurrencies and
tokens?
Due to the multi-jurisdictional nature of cryptocurrency trading, despite the 15% withholding
tax, could digital assets nonethelessbe usedas an instrumentto erode the tax base or to
shiftprofit away from Thailand?
Closing Remarks
Closing Remarks
To wrap up our panel,itis important to note that duringthe World Economic Forum, opinionsamong
world leadersstill variedwithregards to the magnitude and the extentof the impact that cryptocurrency
could have on worldeconomy.5
Even though there are examplesof bestpractice inother jurisdictions,there are other behavioural,socio-
economic,and cultural factors particular to Thailandthat must also be considered.
For the time being,there has not yet beenany enforcementof the SEC’s regulationsand the 90-day
periodhas not yetlapsed.
Onlyby learningfrom experience wouldwe be able to learn what the bestapproach to regulate digital
4
https://blogs.imf.org/2018/04/16/an-even-handed-approach-to-crypto-assets/
5 https://www.coindesk.com/may-lagarde-mnuching-davos-bitcoin-roundup/
S27: Techsauce Moderator Notes 2018

4. assets.
Certainly,by enlargingthe pool of alternative financing,there are various intereststhat must be weighed
against one another.On the one hand, it is crucial to balance betweeninvestorprotectionand easy
alternative financing.On the other hand, there isalso in the national interest to be able to ensure
national security and to collect revenue fromits residents.These are questionswhichare too complex to
be thoroughlyansweredor deliberatedwithinthe 35-minute time slot that we have.
Thank you for attendingour panel this afternoon.
S27: Techsauce Moderator Notes 2018