Thai Securities and Exchange Commission (SEC) Passes Regulation to Allow Digital Shares
Thailand’s capital market is experiencing fast growth. The countries SEC has recognized this and has passed regulations to give the opportunity for new tokenized securities. Tipsuda Thavaramara, helped pass the bill for the new depository system which makes digital shares possible.
Bangkok is the 1st city in the country to announce the new regulations, apparently sharing information about the bill in an English News publication on May 2nd.
Just last month on April 17th, the SEC passed the Exchange Act of 2019. New regulations will amend the already existing act to help the Thai government use blockchain technology to trade tokenized securities. Thai officials have made early announcements to encourage traders to get ready for the newly amended act that will have a large impact on cryptocurrency trading in the country.
Thavaramara was heard to say, “This change will have a major impact as the amended Act provides legal basis to support the tokenization platform.”
She also gave a thorough report that explained the new changes that will affect investors in the market and any digital shares they are invested in. Another point she made was on the new tokenized securities depository platform preparing for launch, additionally how it will affect the market.
One major change is the new adoption of scripless security transactions that were not previously accepted on secondary markets in Thailand. With the new amendment in place, digital shares will not require physical certificates, instead relying on book entries for their holdings records.
This is the first time the country has allowed tokenized securities, just following the recent acceptance of ICOs as well.