The Thailand Security and Exchange Commission has relaxed the restriction placed on individual investment in digital currencies. In a Thursday press statement, the regulator confirmed the development, emphasizing the country’s commitment to embracing digital innovations.
In addition, the SEC also formulated a robust framework regarding digital asset custodial services and other requirements related to digital asset business operations. According to the regulator, it took the bold step to ensuring the protection of investors in Thailand. It believes the new framework will also enable the Thailand government to use digital technology to secure funds for national development.
Notably, the Thailand SEC began the process of lifting the restriction placed on individual investment in the country on March 23, 2023. During this period, the regulator came up with numerous principles for improving the requirements for investing in digital tokens. It also resolved to provide digital asset custodial services and other criteria related to digital asset business operations to ensure maximum investor protection.
The regulator also resolved to support the development of innovation and technology in Thailand. Also, it plans to ensure the country benefits from the sustainable growth of the capital market and digital economy. Earlier, the regulator sought public opinions as regards the principles before coming up with its draft on September 2023.
Thailand SEC to supervise the issuance of investment tokens
In the announcement today, the Thailand SEC said it reached some important resolutions. One of the resolutions is to ensure the supervision of the issuance of investment tokens by removing restrictions on retail investors for digital tokens that have real estate or real estate income streams as their underlying asset (real estate-backed ICO). The regulator also relaxed its restriction on digital tokens that have infrastructure operations or revenue streams from infrastructure operations as underlying assets.
The Thailand SEC also reviewed the criteria for the establishment of custodial wallet businesses. It wants to evaluate their ability to manage risks, store clients securities, and other financial assets.
It also asks digital asset operators to seek permission before offering services to investors in Thailand. This, according to the regulator, helps to ensure effective monitory of their business operations.
Worth noting that these resolutions are now effective from January 16, 2024, and have been published in the Royal Gazette.
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