In cryptocurrency today news, Thailand is taking a cautious step into the world of crypto. The country’s new regulatory sandbox aims to balance innovation with consumer protection.
On August 9, Thailand’s Securities and Exchange Commission (SEC) introduced the Digital Asset Regulatory Sandbox to facilitate the experimentation and development of digital asset services.
The SEC encourages interested parties to participate in the sandbox, promoting innovation in the capital market within a flexible regulatory framework. The sandbox officially launches today.
This initiative comes a few months after the Thai SEC board approved its establishment in March 2024.
The SEC has since issued regulations outlining the qualifications and scope for eligible services in the sandbox. Six types of services are eligible: digital asset exchanges, brokers, dealers, fund managers, advisers, and custodial wallet providers.
“The sandbox participants must incorporate their innovations into the development of digital asset services in the Thai capital market or must participate in a sandbox of the money market regulatory agency.”
The SEC requires sandbox participants to integrate their innovations into the development of digital asset services within the Thai capital market or participate in a sandbox of the money market regulatory agency.
The Thai SEC will also assess participants’ capital adequacy, work systems, management structure, and other conditions to ensure they are well-prepared to provide services within the sandbox.
Participants must specify the scope of their services to minimize potential risks and impacts during the sandbox period, which is limited to one year from the approval date. An extension of the testing period may be requested if necessary.
Thailand has become a relatively favorable jurisdiction for cryptocurrency regulation. While allowing crypto transactions, Thai regulators have implemented strict measures to protect investors’ rights and maintain financial stability.
In recent months, Thailand’s financial authorities have been shifting toward a more crypto-friendly regulatory approach, approving several key initiatives.
