Thailand’s SEC opens a crypto regulatory sandbox to “facilitate experiments”.
The SEC has already allowed professional investors to engage with U.S. Spot Bitcoin ETFs.
Thailand Securities and Exchange Commission (SEC) disclosed its Digital Asset Regulatory Sandbox. Thailand’s sandbox is aimed at fostering innovation in the cryptocurrency sector to ensure effective regulation. This move highlights Thailand’s commitment to balancing advancements in digital assets and regulatory frameworks.
The Digital Asset Regulatory Sandbox provides a controlled environment for crypto businesses to test their services under the SEC. This framework allows to experiment and refine digital asset services without the immediate pressure of regulatory compliance. The sandbox is open to digital asset exchanges, brokers, dealers, fund managers, advisors, and custodial wallet providers.
Sandbox participants must meet specific criteria, like capital adequacy, effective work systems, and a sound management structure. These criteria are designed to ensure that participants are well-prepared to operate within the sandbox framework and contribute to Thailand’s digital asset market. Participants must clearly define the scope of their service to manage risks during the testing period, which lasts up to one year with possible extensions.
Moreover, in March, the SEC approved the establishment of the sandbox, followed by a public hearing in May to gather input from stakeholders. The feedback largely supported the issuance of the regulation marking the sandbox’s parameters.
Thailand SEC’s Initiative Boosts Crypto Innovation
Thailand has progressively favored its stance towards cryptocurrencies. Earlier this year, the Ministry of Finance extended a value-added tax (VAT) exemption on cryptocurrency trading, aiming to aid the country’s position as a digital asset hub.
The SEC also amended regulations to allow professional investors to engage with U.S. spot Bitcoin exchange-traded funds (ETFs) and endorsed the launch of Thailand’s first Bitcoin ETF.
Moreover, the launch of the Digital Asset Regulatory Sandbox marks a key advancement in Thailand’s approach to digital assets. It aligns with the global trend of integrating innovative financial technologies into regulatory frameworks by providing a flexible yet structured environment for testing and developing new services. This initiative will likely serve as a model for other countries to navigate the complexity of cryptocurrency regulation.
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