Following this announcement, Thailand has been moving toward a more crypto-friendly stance throughout this year by approving a Bitcoin ETF, initiating tax breaks for crypto, and more. Financial regulators in the country announced a new project that is expected to test cryptocurrency solution implementations within a dedicated and secure regulatory sandbox.
Thailand’s Securities and Exchange Commission (SEC) introduced the Digital Asset Regulatory Sandbox on the 9th of August 2024, with the overall aim to facilitate experiments and the development of new, efficient, and improved digital asset products.
According to the cointelegraph , interested parties and institutions are welcome to participate in the sandbox in order to test their digital assets-related solutions, while also promoting improved development in the capital market under a framework of flexible regulations. In addition, the official launch of the Digital Asset Regulatory Sandbox in Thailand comes a few months after the Thai SEC board passed a new resolution that approved its establishment, back in March of 2024.
The authority also subsequently issued the regulations for eligible solutions, including participants’ qualifications and the scope of the sandbox trials. Furthermore, the eligible digital asset-related tool providers included six services, such as digital asset exchanges, brokers, dealers, fund managers, advisers, and custodial wallet providers. The participants also needed to incorporate their innovations into the development of digital asset services in the capital market or participate in a sandbox of the money market regulatory agency.
The Thai SEC will also consider aspects like capital adequacy, work systems, management structure, and other conditions in order to ensure that sandbox participants are well-prepared to provide and deliver secure and efficient services within the framework. The companies will also be required to specify the scope of solutions to reduce potential risks and impacts that could occur during the sandbox period of no longer than one year from the approval date. The SEC added that participants may request an extension for their service testing period, only upon expiration of the sandbox.
While allowing crypto transactions and payments, Thai regulators also initiated some strict regulations in order to protect investors’ rights and safety, while also maintaining financial stability in the country. In recent months, Thailand’s financial authorities have been shifting to a more crypto-friendly regulatory approach, approving multiple important initiatives in order to develop the landscape.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now