On the 22nd of February 2019 crypto players in Thailand mark this day as the day their doors were opened to start developing their blockchain sector after the National assembly approved the issuance of tokenized securities. Through the amendments, Thailand residents will now be able to buy bonds and stocks from licensed entities present in the industry.
Per information on local news outlet, The Bangkok Post legislatures approved amending the country’s Securities and Exchange Act. Through the amendment, residents can now make investments in tokenized securities legally. However, for players eyeing the sector in Thailand, they will first have to comply with the rules and regulations put in place and get a securities depository license from the Thai Securities and Exchange Commission (SEC). Besides just offering legal permits to industry players, the Thai SEC will also be responsible for the players present in the sector. Furthermore, through Thai SEC, firms offering depositaries of securities services can also apply for the securities depository license.
Moreover, the Thai SEC also gets the power to categorize tokens on offer according to the royal decree on digital assets or the securities act. Depending on the class the security token will fall on, they will have to abide by the rules and regulations in place.
Only Four Firms Had Permits
Although the amendment will officially come into effect later on in 2019 at the moment, only four firms had the rights to operate their digital assets businesses in Thailand. The Thai Ministry of Finance gave the four business operators licenses after undergoing a series of tests under the hand of the Thai SEC. With the approval of the Thailand SEC Board, the firms had their permits approved. However, two other firms failed to pass the tests, and their applications were thrown out. Now with the amendments coming into effect later, more players will enter the crypto sector in Thailand. On the other hand, only the Thailand Securities Depository Co Ltd had the rights to provide securities depository services. The latter is a subsidiary of the Stock Exchange of Thailand (SEC).
Apart from making amendments and putting in place a regulatory body to control the sector, the National Electronics and Computer Technology Center of Thailand is also in place to help explore opportunities that come with blockchain. Specifically, the center is studying the use of blockchain to facilitate e-voting.