Thailand Securities and Exchange Commission (SEC) has launched a fresh initiative to sample crypto service implementation within a determined regulatory sandbox. The regulator made the disclosure on Friday indicating that the development will drive the development of new virtual assets initiatives.Â
In what the SEC titled Digital Asset Regulatory Sandbox, developers and experts alike will have a platform where they can showcase their innovation. More so, the regulator disclosed that all interested individuals can participate in the Sandbox to test their virtual assets-centric services.
By that, the SEC expressed confidence that there will be an enhanced promotion of innovative development in the capital market within a relaxed regulatory framework. In the announcement, the regulator indicated that the sandbox will commence operations today.
It is worth mentioning that the launching of the Digital Asset Regulatory Sandbox in Thailand surfaced shortly after the Thai SEC leadership approved the establishment of the initiative. Recall that in March 2024, the Thai SEC board approved the launching of the initiative.
However, preparation for the flag-off of the project took a bit of time, which delayed its launching.
Thai SEC Draws Out Participation Criteria
Meanwhile, the body also disclosed the requirements participants must meet before participating in the program. As per Thai’s SEC, only firms and projects offering the six approved services will be permitted to participate in the sandbox trial.
As revealed, the approved services are digital asset exchanges, brokers, dealers, fund managers, advisers, and custodial wallet providers. Additionally, the regulator established that every participant must integrate their solutions into the development of virtual asset innovations in the Thai capital market.
Also, another requirement for participation is that applicants must have participated in a sandbox of the money market regulatory agency. The SEC added that alongside other factors, it will also consider aspects like capital adequacy, work systems, management setup, and other qualifications to ensure that the participants are well-equipped to offer services within the framework.
Likewise, the body indicated that participants must also define the scope of their services to mitigate potential risks and impacts that may surface during the sandbox period. According to the SEC, the program duration will run for a year from the approval date.
Meanwhile, participation can also apply to the lengthening of their service testing period once it expires.