The deputy secretary-general of the Thailand Securities and Exchange Commission has announced that the SEC would introduce Distributed Ledger Technology (DLT) based trading platforms for securities firms. She acknowledged that token investments were gaining momentum in the country.
The Deputy Secretary-General also added that new regulations would be introduced to move along the issuance of electronic securities and online purchases of debentures.
Four digital token projects have received approval from the SEC, while two are still in the works. The SEC plans to introduce environmentally friendly tokens and investment-based projects.
What Does the SEC Have Planned?
Thailand, one of the more cryptocurrency-forward countries, plans to bring more regulations into the space. According to the Deputy Secretary-General, there might be multiple trade chains in the future.
They plan to introduce a DLT on all systems connected by a shared ledger because of the multiple trade chains soon.
The SEC also plans to introduce two types of securities: Tokenized Traditional Securities and Electronic Securities. These products will start trading as digital-native assets.
The planned system comprises complete digitalizing bond trading for primary and secondary markets. It also includes settlement coverage, trading, investor registration and payment processes.
The DLT program also has multiple chain support with interoperability standards without specifying the nature of the chains.
The Grander Effects of the SEC’s Plans
According to Binance Thailand CEO, Thailand’s crypto space has matured into a more institutional market focus for tokenized securities and crypto assets.
This statement is true but the Thai central banks outlaw the use of cryptocurrency for payment. However, talks are underway to introduce a Bitcoin payment sandbox on the Island of Phuket later in October.
This program will increase the opportunities for visitors to use alternative payment methods like crypto on the island. It will also allow regulators to assess the risks of alternative payment methods in a sandbox environment.
Meanwhile, last month, the former Thai Prime minister reiterated that allowing the trade of stablecoins and other digital tokens backed by tangible assets would not be risky.
