FameEX Hot Topics | Thai SEC Unveils Digital Asset Regulatory Sandbox

The Thai Securities and Exchange Commission (SEC) has introduced a Digital Asset Regulatory Sandbox, offering a controlled environment for testing crypto services. This initiative, launched on August 9 in Bangkok, is designed to foster innovation in Thailand's capital market by supporting six specific digital asset-related services, including exchanges and custodial wallet providers.

The SEC is now inviting applications from interested parties to join the sandbox, which promotes innovative development within a flexible regulatory framework. The sandbox's creation was approved by the SEC Board in March, followed by a public hearing in May, where most feedback supported the proposed regulatory changes. The SEC has since established guidelines outlining the criteria for eligible services, participant qualifications, and the scope of the sandbox experiments.

The six eligible services for the sandbox include digital asset exchanges, brokers, dealers, fund managers, advisors, and custodial wallet providers. The SEC will evaluate participants based on factors such as capital adequacy, work systems, management structure, and operational conditions to ensure readiness for the sandbox environment. Participants must also clearly define the scope of their services to minimize risks and potential impacts during the one-year sandbox period, which begins upon approval. Extensions for further testing may be requested if needed.

Additionally, the Thai SEC has stipulated that participants must integrate their innovations into the development of digital asset services in Thailand's capital market or participate in a sandbox overseen by a money market regulatory agency.

This regulatory sandbox is part of the Thai SEC's broader efforts to create a secure and innovative environment for digital assets in Thailand, positioning the country as a leader in the evolving digital economy. The initiative aims to balance innovation with regulatory oversight, ensuring that new digital asset services are thoroughly tested and compliant before full-scale market entry.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.