In a new development, the Thailand Securities and Exchange Commission (SEC) has revised the criteria for investing in digital tokens and providing digital asset custodial services. The update aims to establish a robust mechanism for overseeing digital assets, ensuring investor protection, and fostering the use of digital technology for national development.
Details from the document reveal that the SEC Committee decided to improve the criteria in their March 2, 2023 meeting. They approved principles to make criteria better, focusing on risks with digital assets and supporting tech innovation in fundraising. The draft and principles were open for public comments, and most people agreed.
The updated criteria allow more investment in digital tokens backed by real estate or infrastructure (real-estate-backed ICO and infra-backed ICO). The limit on individual investments has been increased to match the risk, promoting the use of digital technology in fundraising.
Another aspect reviewed is for custodial wallet providers. The criteria now support businesses offering digital asset custodial services, which allows eligible companies within the same group to provide these services if they have the required expertise and comply with SEC regulations.
Additionally, the SEC emphasized that digital asset businesses wanting to undertake other operations need prior approval for effective monitoring. Companies offering digital asset services must avoid collaborating with entities violating the law.
Thailand has been among the first countries to regulate cryptocurrency and issue digital asset licenses. The country’s crypto industry has seen significant developments in recent years, with the Securities and Exchange Commission (SEC) licensing six platforms as exchanges, including Bitkub Capital Group Holdings Co. and Zipmex Thailand.
In 2022, the SEC issued new regulations to enhance investor protection and strike a balance between supervising and promoting the digital asset industry. The Bank of Thailand and a consortium of Thai commercial banks have also been engaged in research related to the development of a CBDC, with Project Inthanon initiated in 2019.
