Thai SEC launches Digital Asset Regulatory Sandbox to test Crypto Services
The Thailand Securities and Exchange Commission (SEC) has announced the launch of a dedicated regulatory sandbox to test the use of cryptocurrency services.
The goal of the Digital Asset Regulatory Sandbox, which the Securities and Exchange Commission (SEC) in Thailand is launching, is to encourage experimentation and development of innovations that will enable the effective delivery of digital asset services in real-world settings, according to a press release by Thailand's financial authorities.
Under a framework of flexible regulation, interested parties are welcome to test their digital asset-related services, encouraging the growth of innovation in the capital market. The SEC has released regulations that define the characteristics of qualifying services, participant requirements, and the parameters of the Sandbox experiments. The main points of these regulations are as follows: The list of the six eligible digital asset-related services is as follows: exchange for digital assets, digital asset brokers, dealers, fund managers, advisers, and providers of custodial wallets for digital assets, the post added.
The participants in the Sandbox are required to either integrate their innovations into the advancement of digital asset services within the Thai capital market or participate in a sandbox run by the money market regulatory body, the post added.
To make sure that the participants are adequately equipped to offer services within the Sandbox framework, the SEC will take into account their qualifications in a number of areas, such as capital adequacy, management structure, work systems, and conditions for pertinent operations under the Sandbox. To lower risks and potential wide-ranging effects, participants in the Sandbox must define the precise scope of services, which cannot exceed a year starting from the date of approval. However, participants may ask for an extension of their service testing period after the Sandbox period ends. Applications for the Sandbox project are now being accepted, and the deadline is August 9, 2024, the post added.
An updated framework was published by the Securities and Exchange Commission (SEC) of Thailand, which made the announcement in January of this year that it is moving toward more crypto-friendly regulations. Under the revised framework, the SEC is now able to monitor the digital asset business more extensively, remove limits placed on retail investors' for asset-backed tokens, and establish new regulations for custodians.
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