According to the findings from the SEC’s investigation, Longroot failed to maintain the qualifications regarding financial position, management structure, and work systems throughout the approval period. Additionally, the company failed to prepare and submit reports on its information technology systems to the SEC within deadline. Therefore, Longroot was deemed to have failed to comply with the regulations as specified by the SEC and was unable to rectify all deficiencies in order to resume its ICO portal services in an appropriate manner. These incidents showed that Longroot had been unable to maintain the qualifications and comply with the regulations as specified under Clause 6(3)(5)(6)(7)(a) to (m) in conjunction with Clause 12 and Clause 16/1 of the Notification of the Securities and Exchange Commission No. Kor Jor. 16/2561 Re: Rules, Conditions and Procedures for Granting an Approval to Digital Token Portal Service Provider, dated 3 July 2018 (“Notification No. Kor Jor. 16/2561”) as well as Clause 4, Paragraph 1(3) of Clause 5 and Clause 6(1) of the Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 38/2565 Re: Detailed Rules related to the Establishment of Information Technology Systems, dated 28 September 2022.

Therefore, the SEC Board, by virtue of Paragraph 1(3) of Clause 37 of the Notification No. Kor Jor. 16/2561, has passed a resolution revoking the approval as an ICO Portal of Longroot, effective on 5 August 2024.

In any case, the SEC is responsible for overseeing that ICO portals comply with relevant regulations and maintain the qualifications specified by the SEC at all times while conducting its business. Additionally, ICO portals must be ready to support business operations mainly for the interest of investors. Currently, Longroot has no clients or outstanding transactions.

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Remarks: Relevant law and regulations are as follows:
          - Paragraph 3 of Section 19 of the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018) prescribes that the granting of approval of digital token portal service providers shall be in accordance with the rules, procedures and conditions as specified in the notification of the SEC: https://www.sec.or.th/EN/Documents/ActandRoyalEnactment/RoyalEnactment/enactment-digitalasset2018.pdf   
          - Notification of the Securities and Exchange Commission No. Kor Jor. 16/2561 Re: Rules, Conditions and Procedures for Granting an Approval to Digital Token Portal Service Provider, dated 3 July 2018: https://publish.sec.or.th/nrs/8182s.pdf
          - Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 38/2565 Re: Detailed Rules related to the Establishment of Information Technology Systems, dated 28 September 2022: https://publish.sec.or.th/nrs/9601s.pdf