Thailand’s Parliament Green-Lights Issuance of Tokenized Securities
- The National Legislative Assembly has endorsed an amendment to the Securities and Exchange Act.
- According to the report, changes will take effect later this year.
Thailand’s government is moving to allow the issuance and trading of tokenized securities in the country, major news outlet The Bangkok Post reported on Feb. 22.
The National Legislative Assembly has endorsed an amendment to the Securities and Exchange Act, which will allow securities, such as stocks and bonds, to be issued on the blockchain once the amendment is in effect. According to the report, changes will take effect later this year.
Additional rules and detailed guidelines will be issued by the Thailands Securities and Exchange Commission (SEC) in the coming months, so crypto platforms can seek a security depository license. Previously only the Thailand Securities Depository Co Ltd., a subsidiary of the Stock Exchange of Thailand (SET), was allowed to operate as a securities depository, but now businesses can also apply for this license.
This legislative effort will help develop the digital asset ecosystem, and clear the way for tokenization platforms in the future, the Thai SEC deputy secretary-general, Tipsuda Thavaramara said. Whether a security token offering is regulated by the securities act or the royal decree on digital assets will be decided by the Thai SEC as well.
This year, the Thai Ministry of Finance also awarded four crypto-related firms with a digital asset business license under the Thai SEC Board recommendation. Unable to comply with Thai SEC rules and regulations, two other applicants were rejected.
- One of the largest banks in Thailand, Kasikornbank (KBank), acquired local crypto exchange Satang for $103 million only a month after setting-up a $100 million fund for web3, fintech, and AI.
- Once the acquisition has been completed, KBank plans to rebrand Satan to Orbix, and separate the business into three divisions, a custody platform, crypto venture arm, and blockchain development.
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- During an interview with FT, CEO Brian Armstrong said that before the lawsuit a SEC staff member had said that all crypto except BTC was security, and should be delisted.
- When asked how he came to that conclusion, the SEC staff member reportedly said “we’re not going to explain it to you, you need to delist every asset other that Bitcoin”.
- These documents are seen as central in Ripple’s battle against the SEC, which in 2020 accused the company of selling its XRP token without registering it as a security.
- The documents in question are internal emails, text messages, and expert reports that followed Hinman’s 2018 speech, in which he said ETH and BTC were not securities.