Thailand Approves Securities and Exchange Act Amendments for Blockchain Tokenized Securities
Thailand has been working on the proper way to govern various cryptocurrencies in their country. On February 22nd, local newspaper The Bangkok Post reported that the National Legislative Assembly has decided to permit tokenized securities to be issued on the blockchain.
The former laws that governed this area of the crypto market were within the Securities and Exchange Act, which will now be amended. The changes are not scheduled for implementation until last this year, but it will allow products like stocks and bonds to be issued on this ledger once completed.
The Securities and Exchange Commission (SEC) in Thailand plans to add on to those rules, enabling the crypto platform to secure a license as a securities depository. The Thailand SEC deputy secretary, Tipsuda Thavaramara, says that the regulatory plans to allow other businesses to apply for licenses as well, like businesses that operate as the depositories for securities and digital tokens. Before now, the act that defined these depositories only would allow Thailand Securities Depository Co Ltd to operate as this type of depository.
Even though this is a helpful development for companies that issue these tokens, there will be a later decision made regarding the current securities act, and if it will regulate security token offerings. At this point, it appears that the Thai SEC will largely base this decision on the tokens individually, rather than creating a single law that everything is subjected to.
The Thai Ministry of Finance decided to approve the business license applications for four crypto-related first that wished to issue digital assets, based on the Thai SEC’s recommendation from the Board. Though there were six applicants total, two of these applicants did not follow the clear rules issued by the SEC and were ultimately rejected.
Blockchain is being applied to the Thailand economy in many ways lately, including the implementation of blockchain e-voting, based on new research being performed by the National Electronics and Computer Technology Center of Thailand. Right now, the concept is being tested at a small level and could be deployed within the embassy or consulate until the authorities see how to handle this new option.