The Thailand SEC is planning significant changes to the 2019 Securities and Exchange Act, aiming to create more support for cryptocurrency and digital assets. The updates intend to broaden the scope of scripless transactions within primary markets, ushering in smoother pathways for digital asset securities trading.
In a scripless transaction, securities ownership is recorded solely through book entries, eliminating the need for physical certificates. The Thai SEC is diligently working towards establishing a definitive regulatory framework for its burgeoning cryptocurrency sector.
Important Revisions to the Securities and Exchange Act
Back in March 2019, the fintech head at the Thai SEC, Archari Suppiroj, emphasized that comprehensive guidelines for security token offerings were on the verge of being unveiled. At that juncture, Suppiroj highlighted that the legal framework for issuing STOs in the primary market was nearly finalized. STOs Citing the Bangkok Post, the Thai SEC is making sure market players are aware of the impending regulations
Tipsuda Thavaramara, the Thai SEC's deputy secretary-general, notes that the updated policies extend scripless transaction provisions to the primary market. amended securities act Sharing thoughts on the legislative changes, Thavaramara commented:
\"The shift will notably impact the landscape as the rewritten Act offers a legal foundation for the tokenization ecosystem. It also opens up the market to new participants and fosters the concept of digital shares.\"
With the introduction of this amendment, previous restrictions on scripless transactions in the primary market have been lifted. As a result, issuing
This regulatory update provides much-needed clarity for Thai cryptocurrency stakeholders, supporting the transition towards tokenized securities in the primary market.
Anticipating the Move Towards Tokenization
Previously, traditional securities oversight fell to the Thai SEC, while the cryptocurrency exchanges were governed separately under a royal decree. tokenization Considering the often mutable nature of cryptocurrency tokens, classifying them strictly as utility or security tokens can be challenging. Sometimes issuers need tangible assets as collateral, which introduces compliance hurdles.
\"There will essentially be two avenues: securities and digital assets. ICO issuers seeking asset-backed collateral will need to consider if they classify as REITs, asset-backed ICOs, or both, potentially complicating matters.\"
According to Thavaramara:
Thus, companies whose tokens are deemed securities will be governed by the revised Act. In contrast, utility tokens remain under the digital asset royal decree.
Thavaramara emphasizes that the Thai SEC aims to nurture an environment conducive to the digital economy's growth. The deputy secretary-general notes that regulators favor an approach that encourages ongoing growth and innovation in cryptocurrencies and digital assets, drawing in new market participants.
For Thailand, these initiatives represent a continuation of the country's efforts to build a solid regulatory structure for its cryptocurrency ecosystem. The country already has laws regulating initial coin offerings (ICOs) and digital currency exchanges.
Streamlining Regulations for Cryptocurrency Securities
In mid-March 2019, the Thai SEC greenlit the country's first ICO portal, positioning Thailand as a major player in the crypto and blockchain arenas
As previously reported by Blockonomi The Stock Exchange of Thailand (SET) is rumored to be in the process of hub in Southeast Asia.
Osato is an avid follower of Bitcoin, always eager to share insights on the latest industry developments. When not engrossed in tracking these trends, he's either chasing his high score in Scrabble or pondering some existential riddle. Reach out to [email protected] establishing a cryptocurrency trading platform.
