Thailand’s current regulation on cryptocurrency and Stock Exchange’s plans to launch a new Token Trading Platform to capture growing investor demand in cryptocurrency.
The Stock Exchange of Thailand (SET) is offering a new digital assets exchange to fund on investor interest in cryptocurrency. SET is trying to get a license from the country’s ministry of finance as per reports published on Thursday from Bangkok Post.
Pattera Dilokrungthirapop, the vice-chairwoman of the SET board of governors, said that they have taken this step as they want to capture growing investor demand in Cryptocurrencies.
The stock exchange will have a robust technical system for security besides a digital wallet for token storage. The goal is to launch this offering this year.
Pattera, who is also chairwoman of the Association of Securities Companies, confirmed that SET security company members are planning to become brokers and dealers to trade on a new exchange.
SET launched a Kickstarter marketplace built on blockchain Technology. The service, dubbed live, uses blockchain to empower peer to peer trading in an effort to help start-ups access new capital from investors, including those who draw from venture capital and institutional investor worlds.
Last week, Ministry of Finance of Thailand provided digital assets business license to four firms: Bitcoin Exchange, Butkus Online, Satang Corporation (Satang Pro), and Coins TH Co. Two firms Cash2coin and Southeast Asia Digital Exchange (SEADEX), were refused the license. An application for Coin Asset is still under consideration by the ministry.
Cryptocurrency business is being regulated under “Emergency Decree on Digital Asset Businesses B.E. 2561 (2018).” by the country’s Security and Exchange Commission. This Emergency Decree on Digital asset business is launched by King of Thailand that contains certain provisions relating to restriction of personal rights and liberty. The reasons and necessity in restricting personal rights and liberty under this Emergency Decree are that the law is enacted to ensure the effectiveness of the supervision and monitoring of the activities and businesses relating to digital assets and the transparency of such activities and businesses, for the purpose of maintaining the stability of the country’s economy, and protecting investors and the public concerned. The King was pleased to direct enactment of this Emergency decree as follows:
Section 1. This Emergency Decree shall be called “Emergency Decree on Digital Asset Businesses B.E. 2561”.
Section 2. This Emergency Decree shall come into force as from the day following the date of its publication in the Government Gazette.
Section 3. In this Emergency Decree:
“Cryptocurrency” means an electronic data unit created on an electronic system or network for the purpose of being used as a medium of exchange for the acquisition of goods, services or any other rights. “Digital token” means an electronic data unit created on an electronic system or network for the purpose of providing the right to a person that he/she can take participation in investment. “Digital asset” means cryptocurrency and digital token. “Digital asset business” means any of the following businesses:
- Digital asset exchange (2) Digital asset broker (3) Digital asset dealer (4) other businesses relating to digital assets as prescribed by the Minister under the recommendation of the SEC.
Thailand’s crypto licensing rules were initially publicly announced in July of last year, with 20 crypto firms applying for the license within a month. The rules enforce projects to get approval from SEC before starting crypto services.