Thailand’s Securities and Exchange Commission (SEC) is moving towards more cryptocurrency-friendly regulations, with an updated framework released earlier this month.
The Thai SEC regulates cryptocurrencies under the Digital Asset Businesses Decree, focusing on areas such as sales, trading and initial coin offerings (ICOs). Digital asset companies operating in Thailand are required to obtain licenses and comply with rules established by the SEC as outlined in this decree, the SEC has She said.
The SEC’s updated framework removes retail investor limits for asset-backed tokens, creates new rules for custodians, and gives the agency a broader role in monitoring digital asset activity.
Investment limit removed
The removal this month of the investment limit for retail investors in digital tokens backed by real estate or infrastructure marks a significant change. Previous rules had limited retail investors to 300,000 baht (about $8,400) per offering in asset-backed ICOs.
The change is expected to broaden the market to a wider range of investors and support the development of the nation’s digital assets market.
The SEC update also requires the establishment of dedicated entities for custody portfolio management. However, these providers must be subsidiaries of publicly traded companies with a track record in safe custody of securities.
Tracking business expansion
The new regulations require greater involvement of the SEC in monitoring the expansion of businesses in the digital assets sector. Companies looking to grow must first obtain SEC approval, ensuring their expansion plans align with regulatory standards.
According to the Bangkok Post, the Thai SEC has chosen not to allow spot bitcoin Exchange Traded Funds (ETFs). This approach is reminiscent of South Korea, which decided not to allow such ETFs in its domestic markets. An official from South Korea’s Financial Services Commission said Local media say that “the government has consistently maintained the principle of prohibiting financial institutions from investing in virtual assets in order to stabilize the financial market and protect investors.”
This cautious approach comes after the market was significantly impacted by the failure of Do Kwon’s Luna and TerraUSD cryptocurrencies in Korea.
Mid-January of Binance Thailand the launch could also strengthen the growth of cryptocurrencies in Thailand. Binance TH facilitates digital asset trades with Thai Baht trading pairs, partners with local banks, and partners with Binance Kazakhstan for brokerage services, all overseen by the Thai SEC.
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