Thailand’s Securities and Exchange Commission is making strides toward embracing cryptocurrencies with its latest regulatory updates. In a move to foster growth and innovation in the digital asset space, the SEC recently unveiled an updated framework that signals a more crypto-friendly approach.
The Thai SEC currently regulates cryptocurrencies under the Digital Asset Businesses Decree, focusing on areas such as sales, trading, and initial coin offerings (ICOs). Businesses operating in Thailand’s digital asset sector are required to obtain licenses and comply with the rules set forth by the SEC.
One significant change in the updated framework is the removal of investment limits for retail investors in asset-backed tokens. Previously, retail investors were restricted to 300,000 baht (approximately $8,400) per offering in asset-backed ICOs. This change is expected to broaden the market for a wider range of investors and support the nation’s digital asset market development.
The new regulations also introduce requirements for custodial wallet management. Providers of custodial services must be subsidiaries of publicly listed companies with a proven track record in secure securities storage. Additionally, the SEC will play a larger role in monitoring the expansion of businesses in the digital asset sector, requiring firms to secure approval for their growth plans to ensure compliance with regulatory standards.
However, the SEC has opted not to allow spot bitcoin exchange-traded funds (ETFs), aligning with South Korea’s approach. South Korea has prohibited financial institutions from investing in virtual assets to stabilize the financial market and protect investors. This cautious stance follows market volatility caused by the failure of cryptocurrencies Luna and TerraUSD in Korea.
Thailand’s crypto growth is further supported by the mid-January launch of Binance Thailand. The platform facilitates digital asset exchanges with Thai baht trading pairs, collaborates with local banks, and partners with Binance Kazakhstan for brokerage services, all under the supervision of Thailand’s SEC. This strategic move is expected to contribute to Thailand’s burgeoning crypto ecosystem.
The SEC’s updated framework demonstrates Thailand’s commitment to fostering a conducive environment for digital asset innovation and investment, positioning the country as a key player in the global crypto landscape.
(Source: CoinDesk | Bitcoin Sensus)
