The Securities and Exchange Commission (SEC) of Thailand is gearing up to introduce a tokenized securities trading system based on distributed ledger technology (DLT). This move aims to allow securities firms to trade digital tokens.
The deputy secretary-general of the Thai SEC, Jomkwan Kongsakul, expressed that the popularity of token investments is on the rise. The Bangkok Post reported on February 3rd that the regulator will permit securities firms to trade digital tokens to tap into their expansive investor bases.
“The SEC is utilizing technology to boost efficiency in the capital market by endorsing an electronic securities ecosystem,” Kongsakul stated. She further mentioned that “fresh regulations will be rolled out to expedite the issuance of electronic securities and online acquisition of debentures,” which are debt instruments utilized by large corporations for borrowing purposes.
The SEC’s new DLT-based debt instrument trading system has approved four digital token projects, with two more under review focusing on green tokens and investment-centric projects, as per the report.
The proposed system will offer complete digitalization of bond trading for both primary and secondary markets, encompassing settlement, trading, investor registration, and payment processes. It will also support multiple chains with interoperability standards, although the specific chains have not been disclosed.
The Thai crypto environment is evolving towards a more institutional market focus for both tokenized securities and crypto assets, as stated by Binance Thailand CEO Nirun Fuwattananukul in October. Despite crypto payments remaining illegal by the Thai central bank, plans are underway to inaugurate a Bitcoin payment sandbox on the tourist destination, Phuket, later this year.
The test program will provide foreign visitors with an alternate crypto payment option while allowing regulators to assess related risks in a sandbox setting. In January, former Thai Prime Minister Thaksin Shinawatra claimed that there was “no risk” in permitting the trade of stablecoins and other digital tokens backed by tangible assets. There are also reports of the Thai government contemplating the issuance of a government bond-backed stablecoin, as per a January 30th Jinshi report, although no official confirmation has been made.
