Originally published on: August 09, 2024
Financial regulators in Thailand are shaking up the crypto industry with the launch of a new initiative aimed at testing cryptocurrency services within a specialized regulatory sandbox.
The Digital Asset Regulatory Sandbox, introduced by Thailand’s Securities and Exchange Commission (SEC) on Aug. 9, is set to revolutionize the development and experimentation of digital asset services in the region.
Parties interested in exploring the possibilities of digital assets are encouraged to join the sandbox, fostering innovation in the capital market under a framework of adaptable regulation. The official launch takes place today, marking a significant milestone in Thailand’s crypto landscape.
The establishment of the Digital Asset Regulatory Sandbox follows a resolution passed by the Thai SEC board in March 2024, where regulations for eligible services were issued. These services include digital asset exchanges, brokers, dealers, fund managers, advisers, and custodial wallet providers, showcasing Thailand’s commitment to laying a strong foundation for the crypto industry.
To ensure participants are well-prepared to navigate the regulatory landscape, the Thai SEC will assess various aspects such as capital adequacy, management structure, and operational systems. Specific service scopes will be outlined to mitigate risks during the one-year sandbox period, with the option to extend testing upon request.
Thailand has garnered a reputation as a crypto-friendly jurisdiction, implementing regulations to safeguard investors’ interests while promoting financial stability in the country. Recent initiatives have further solidified Thailand’s position in the crypto world, including the approval of the first Bitcoin exchange-traded fund (ETF) by One Asset Management in June 2024.
Additional regulatory changes, such as tax breaks for investment token holders and the lifting of restrictions on retail investors purchasing digital tokens, demonstrate Thailand’s progressive approach to embracing digital assets.
With the launch of the Digital Asset Regulatory Sandbox, Thailand is set to become a hotbed of crypto innovation, offering a glimpse into the future of digital asset services in the region. Stay tuned as Thailand leads the way in revolutionizing the crypto landscape.
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