Thailand Approves Blockchain Security Issuance, Trading
The government of Thailand has made a significant move in the blockchain space. According to the official report, the country has decided to allow blockchain-based securities to be both issued and traded.
Giving the Green Light
Thailand’s very own National Legislative Assembly has reportedly given the green light to the amendment to the Securities and Exchange Act. Through it, it issuance of tokenized securities (e.g. bonds, stocks, etc.) has finally been legalized.
Thanks to the approval from the country’s government, its Securities and Exchange Commission (SEC) has modified the act. It is basically the change that is expected to take effect later this year. The SEC, in particular, is believed to issue comprehensive guidelines and rules specifically designed for tokenized and electronic securities, all of which are going to arrive in the coming months.
Tipsuda Thavaramara, the country’s deputy secretary general of SEC, stated in the report that the legislative effort paves the way for tokenization platforms in the near future. At the same time, the government official is confident that the move would finally help develop the digital asset ecosystem in Thailand.
Interestingly, the amendment of the act has a lot to offer than the aforementioned. That is because it is also expected to enable businesses to be licensed in order to operate legally as depositories of securities and digital currencies. In the past, this type of business was only limited to Thailand Securities Depository Co Ltd, which is basically a part of the SET or the Stock Exchange of the country.
Regulating Under One Umbrella
It is worth noting that all cryptocurrency businesses in Thailand are regulated under one umbrella. The latter refers to none other than the Emergency Decree on Digital Asset Businesses B.E. 2561 of 2018.
It should also be noted that the SEC is the one responsible for regulating a security token offering, a process that needs to be done under the aforementioned royal decree or the securities act itself. The director of the corporate communication department at the SEC named Pariya Techamuanvivit suggested that it would largely depend on features of rights and obligations connected to that certain token.
Apparently, the Ministry of Finance in Thailand has already been issuing digital asset business licenses, giving it to at least four digital currency firms while also rejecting two entities in January this year. The SET, on the other hand, is looking to apply for a license from the said ministry in order to have the approval of operating a new crypto exchange platform the same month.