The National Legislative Assembly of Thailand has officially allowed the issuance of tokenized securities on blockchain. According to a February 22 report from The Bangkok Post, the government will amend the Securities and Exchange Act, which will come into effect later in 2019. The new act will allow tokenized securities such as stocks and bonds to be officially issued on blockchain, the report revealed.
The Thai Securities and Exchange Commission (Thai SEC) will be issuing additional regulations regarding the space. The newly imposed rules will allow cryptocurrency platforms operating in the country to seek a securities depository license. Tipsuda Thavaramara, the deputy secretary of Thai SEC, said that the commission will also allow businesses that operate as depositories of securities and digital tokens to apply for such licenses.
The Securities and Exchange Act previously defined Thailand Securities Depository Co Ltd, a subsidiary of the Stock Exchange of Thailand (SET), as the only company permitted to operate as a securities depository for the SET’s securities trading operations.
Thavaramara also said that the Securities and Exchange Commission will be the one responsible for deciding whether a security token offering is regulated under the current securities act or the royal decree on digital assets. The decision will reportedly depend on the rights and obligations associated with a particular token, The Bangkok Post noted.
Thailand’s new act represents an important step towards cryptocurrency adoption for the country. The kingdom wants to introduce more regulation that can help the industry thrive, and has already issued digital asset business licenses to four crypto-related firms under the recommendation of the Thai SEC Board.
The country’s main computer technology center is also exploring the use of blockchain in e-voting that could be deployed in the short term and in a closed environment.